Iberdrola, bp & Enagás to Study Largest Green H2 Production in Valencia

Bilbao-based Spanish energy giant Iberdrola has recently revealed that it is collaborating with gas and oil companies Enagas and bp to study the feasibility of  building, at bp’s refinery in Castellón, the first phase of the largest green hydrogen production facility in the region of Valencia.

The study aims at examining the possibility of installing a 20 MW electrolyser for the production of green hydrogen on land owned by bp in the El Serrallo industrial estate. A 40 MW photovoltaic plant, among other sources, would power the electrolyser with renewable energy. Since the bp plant in Castellón is the largest producer and consumer of hydrogen in the Valencian Community, the company states that this new project will replace the grey hydrogen that the refinery uses in its biofuel production process, with green hydrogen which will reduce CO2 emissions by up to 24,000 tonnes per year, contributing to the plant’s decarbonisation. Additional value-added uses for the green hydrogen produced at the plant, such as supplying the heavy transport sector and contributing to the decarbonisation of other energy-intensive industries in the area, will also be explored by the project.

Iberdrola says that the 20 MW electrolyser could start commercial operations in 2023, with an investment of approximately €90 million. In further stages, the electrolysis capacity could be scaled up to 115 MW, becoming the largest green hydrogen project in the refining sector in Spain and the most ambitious in the Valencian Community. In addition to the electrolyser, the project could incentivise an estimated additional investment of around €70 million in new renewable energy facilities and contribute significantly to the economic and industrial recovery of the area, resulting in the creation of high quality, value-added jobs.

Not only is this the second green hydrogen partnership Iberdrola has announced this month, the firm is also planning to build a solar-plus-hydrogen power project at ceramic tile maker Porcelanosa’s factory in Villarreal to decarbonise its production process. The company hopes that this collaboration with bp and Enagás, will advance their respective decarbonisation strategies for the industrial and transport sectors in the Valencian Community, a region in which all three companies are deeply rooted. Carlos Barrasa, bp Spain’s chairman, said the study “reinforces our commitment to hydrogen as a fuel of the future”.

Ángeles Santamaría, CEO of Iberdrola España, said, “This is an alliance of companies willing to tackle the transformation of their production processes with Iberdrola, which has capacity to produce and supply green energy, and the participation of the supply chain and the incentives of European funds. Together, we will contribute to advancing the technological maturity of green hydrogen, turning it into a competitive solution for the medium-term decarbonisation of industry and heavy transport.”

Iberdrola believes that this initiative is aligned with the Green Hydrogen Strategy of the Valencian Community, as well as with the Hydrogen Roadmap of Spain’s Ministry for Ecological Transition and the Demographic Challenge.