BP and Iberdrola get €211 million EU boost for Castellón green hydrogen plant

The Spanish Ministry for the Ecological Transition, through the Institute for the Diversification and Savings of Energy (IDAE), has reassigned up to €211 million of European IPCEI Hy2USE funding to the joint BP‑Iberdrola project at the Castellón refinery. The financing supports the 25‑MW green‑hydrogen electrolyser that has completed construction and entered testing, with production expected before the end of the year and a target to become Spain’s largest operational green‑hydrogen plant by 2026.

The project also benefits from an additional €15 million under the NextGenerationEU recovery plan and involves the Institute of Energy Technology (ITE) in Valencia. The hydrogen produced will replace part of the refinery’s natural‑gas consumption and may be supplied to hard‑to‑decarbonise sectors such as the regional ceramics and chemical industries. BP and Iberdrola are now analysing options to expand the plant’s capacity further, aligning with the EU’s Accelerate EU package aimed at speeding Europe’s industrial decarbonisation and energy independence.