Through the Institute for Energy Diversification and Saving – IDAE, the Ministry for Ecological Transition and the Demographic Challenge has authorized the transfer of around 211 million euros of IPCEI Hy2USE funds to Castellón. The funding will assist Iberdrola España and bp in their efforts to look into opportunities to push green hydrogen production in Spain refinery at Castellón.
The initiative will be aligned with the recently unveiled emergency package, ACCELERATE EU, that seeks to promote a more decarbonized Europe and bolster energy supply self-reliance.
The collaboration between Iberdrola España and bp to push green hydrogen production in Spain corresponds with the decarbonization and advancement of novel energy solutions in the Valencia area, as it substitutes the consumption of natural gas with renewable energy produced in the country within industrial processes. Some of the green hydrogen might also be utilized in areas where decarbonization is especially demanding, including the ceramics and chemicals industries.
Iberdrola España and bp, by means of their joint venture Castellón Green Hydrogen S.L., wrapped up the construction of a 25 megawatts green hydrogen plant in the Castellón refinery and are now entering the commissioning and evaluation phase. The plant is projected to start producing green hydrogen by the end of 2026 and will be the largest green hydrogen plant in Spain by 2026.
Notably, the green hydrogen plant will be built in partnership with the Energy Technology Institute – ITE of Valenci and has been awarded €15 million in funding from Innovative Value Chain and Knowledge in Renewable Hydrogen programs within the Spanish Recovery, Transformation and Resilience Plan, with the funds set to be disbursed by the NextGenerationEU of the European Union.