bp launches plans for low-carbon green hydrogen cluster in Spain

bp today launched the green hydrogen cluster of the Valencia region (HyVal) at its Castellón refinery. Led by bp, this public-private collaborative initiative is intended to be based around the phased development of up to 2GW of electrolysis capacity by 2030 for producing green hydrogen at bp’s refinery.

HyVal is expected to play an instrumental role in decarbonizing the operations of bp’s Castellón refinery. Its transformation – including green hydrogen, biofuels and renewable energy – could see bp invest a total of up to 2 billion Euro in Castellon by 2030.

Green hydrogen – generated by the electrolysis of water using renewable power – will support decarbonization of the refinery’s operations, replacing its current use of ‘grey’ hydrogen generated from natural gas.

Green hydrogen will also be used as a feedstock in biofuel production, specifically of sustainable aviation fuel (SAF).

HyVal aims to support the development of Valencia region into a leader for the production of green hydrogen in Spain. Its hydrogen production is expected to be developed in phases.

The first, anticipated to be operational in 2027, will involve the installation of an electrolysis plant with at least 200MW capacity at Castellón refinery. This initial stage would be expected to produce up to 31,200 tonnes of green hydrogen per year.

In the second phase, which could be completed in 2030, the electrolysis plant would be expanded to reach a capacity of up to 2GW of net installed power. “The production of green hydrogen will be another step in strategic energy autonomy for Spain and more widely for Europe. “

Andrés Guevara said: “We see Hyval as key to Castellón’s transformation and critical to supporting decarbonization across the Valencia region. We aim to develop up to 2GW of electrolysis capacity by 2030 for green hydrogen production, helping decarbonize our operations and customers. And we plan to triple the refinery’s production of biofuels to help meet the growing demand for lower carbon fuels such as SAF. We believe HyVal can play an important role in Valencia region’s efforts to decarbonize and help support thousands of industrial jobs across the region.”

Carolina Mesa, bp’s vice president Hydrogen, Spain and New Markets, added: “The production of green hydrogen will be another step in strategic energy autonomy for Spain and more widely for Europe. “