BP and Spanish energy company Iberdrola say they intend to form a joint venture (JV) to develop up to 600,000t/yr of green hydrogen production, coupled with newly installed renewable power capacity, at various hubs across Spain, Portugal and the UK.

The JV, which is expected to be finalised by the end of this year, would also include production of derivatives such as green ammonia and methanol, potentially for export into northern Europe. The two companies would also potentially look to develop green hydrogen production in other regions.

The alliance would combine Iberdrola’s track record in renewables development and its global customer base with BP’s experience in gas processing, knowledge of trading and global customer portfolio, the companies say.

600,000t/yr – Target production from new projects

“Creating the lower-carbon energy solutions that our customers want and need requires the integration of different technologies, capabilities and forms of energy. We can deliver this faster and at scale when we work in partnership with others,” says BP CEO Bernard Looney.

The JV would include existing green hydrogen projects under development by the two companies in Spain and the UK.

In Spain, the firms are already working together on a 20MW solar-powered project to replace grey hydrogen used in biofuel production at BP’s Castellon refinery. The firms, together with research institute the Instituto Tecnologico de la Energia, have submitted the Castellon project to the Spanish government's Perte renewable hydrogen funding scheme.

Iberdrola and BP also plan to form a JV to invest up to €1bn ($1.02bn) to roll out a network of up to 11,000 rapid and ultra-fast electric-vehicle charging points in Spain and Portugal by 2030.

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Author: Stuart Penson