BP, Iberdrola to build green hydrogen project in Spain

BP (NYSE:BP) and Iberdrola (OTCPK:IBDRY) (OTCPK:IBDSF) said Thursday they reached a final investment decision to build a 25 MW green hydrogen plant in Castellon on Spain’s eastern coast, with the objective of becoming operational in H2 2026.

The planned project, which will benefit from a €15M European Union subsidy, is designed to support the decarbonization of BP’s (BP) oil refinery in Castellon, which is expected to result in avoiding emissions of 23K tons/year of CO2, the two companies said.

BP (BP) and Iberdrola (OTCPK:IBDRY) (OTCPK:IBDSF) each will finance half of the project, without disclosing the cost.

The 25 MW electrolyzer will be powered by renewable electricity through a power purchase agreement signed with Iberdrola (OTCPK:IBDRY) (OTCPK:IBDSF) that will supply 200 GWh/year coming from Iberdrola’s photovoltaic and wind projects.

The electrolyzer will include five modules of 5 MW containerized proton exchange membrane technology, which will be supplied by Plug Power (PLUG).