BP and Iberdrola have formed a 50-50 joint venture to develop a 25MW green hydrogen project in Spain.
BP said the green hydrogen will support the decarbonization of BP’s refinery operations in Castellón, expected in 2026. BP’s investment in the green hydrogen is expected to result in avoiding the emission of 23,000 tons of CO2 per year.
The project has received funding of 15 million euros from the Spanish Recovery, Transformation and Resilience Plan, with funding allocated by NextGenerationEU. This plant could create up to 500 new direct jobs during its construction.
“BP’s first investment decision for an industrial scale project is an important step forward for our hydrogen business,” Felipe Arbelaez, BP’s senior vice president, hydrogen & CCS, said.
The plant will convert 200 GWh/year of Iberdrola’s renewable energy into green hydrogen that will contribute to BP’s decarbonization strategy.
“This partnership with BP and our project is another step in Iberdrola’s firm and real commitment to promote green hydrogen as a key vector for industrial decarbonization,” Millan Garcia-Tola, Global Director of Hydrogen in Iberdrola said.
The 25 MW electrolyzer will be powered by renewable electricity through a power purchase agreement (PPA) signed with Iberdrola that will supply 200GWh/year coming from Iberdrola’s solar and wind projects. The electrolyzer will include 5 modules of 5 MW containerized proton exchange membrane (PEM) technology, which will be supplied by Plug Power, a manufacturer of green hydrogen solutions.
In parallel to this initial 25 MW project, BP is assessing opportunities to increase capacity in the coming years.
Recently, Iberdrola announced a joint venture with BP to accelerate the electric mobility in Spain and Portugal.
Iberdrola has also entered into a number of partnerships with Norges Bank Investment Management, Masdar, Mapfre and Energy Infrastructure Partners to further advance the development of renewable energy, and with GIC to expand transmission networks in Brazil.