Spain’s Ministry for the Ecological Transition and the Demographic Challenge, via the IDAE, has approved the reallocation of up to €211 million in funding from the IPCEI Hy2USE programme to Iberdrola España and BP. The decision unlocks fresh opportunities to scale up green hydrogen production at BP’s refinery in Castellón.
The initiative forms a core part of the strategic alliance between the energy giants, which aims to accelerate the deployment of clean energy solutions and replace industrial natural gas usage with domestically produced renewables. Beyond refining, the green hydrogen generated is earmarked for hard-to-abate sectors, including the regional ceramics and chemicals industries, cementing the technology’s role in Spain’s wider energy transition.
The facility also benefits from a €15 million capital injection via NextGenerationEU funds and involves collaboration with the Valencia Energy Technology Institute (ITE). Production is scheduled to commence before the end of the year, positioned to make the facility Spain’s largest operational green hydrogen plant.
The development underscores Iberdrola’s ongoing strategy to drive innovation and renewable solutions to accelerate the electrification of the economy.
