Iberdrola España, the Iberdrola Group subsidiary in Spain, and bp have received approval from the Ministry for the Ecological Transition and the Demographic Challenge, through IDAE, for the reallocation to Castellón of up to €211 MM in funding from the IPCEI Hy2USE program. This will enable both companies to explore new opportunities to increase green hydrogen production at bp’s refinery in Castellón.

The initiative forms part of the alliance between Iberdrola and bp to promote new energy solutions that help replace the use of natural gas with domestically produced renewable energy in industrial processes. In addition, the green hydrogen produced could be allocated to sectors that are difficult to decarbonize, such as the ceramics and chemicals industries, strengthening the role of this technology in the energy transition.

The facility, which also involves the participation of the Valencia Energy Technology Institute (ITE) and has received an additional €15 MM in funding through NextGenerationEU funds, is expected to begin producing green hydrogen before the end of the year and to become Spain’s largest operational green hydrogen plant in 2026.