Posted on 13 Sep 2024
Construction is set to start at Spain’s largest green hydrogen plant as partners bp and Iberdrola announce a final investment decision on the project, Kallanish learns.
With the green light, the 50-50 JV Castellón Green Hydrogen expects the 25-megawatt project to be operational in the second half of 2026. The plant will convert 200 gigawatt-hours per year of Iberdrola’s renewable power into green hydrogen to help decarbonise bp’s Castelón refinery.
According to a joint statement on Thursday, the proton exchange membrane (PEM) electrolyser will feature five modules of 5 MW supplied by Plug Power. It is expected to produce 2,800 tonnes of green hydrogen annually, eliminating around 23,000 t/y of CO2. This is the equivalent of the emissions of 5,000 cars over the same period, bp says.
“bp’s first investment decision for an industrial scale project is an important step forward for our hydrogen business,” comments Felipe Arbelaez, bp’s senior vice president, hydrogen & CCS. “We are focused on value, progressing only the best projects in our portfolio that can create additional value through integration and fully meet our investment hurdles.”
Without disclosing the investment size, bp notes it will assess opportunities to increase capacity in the coming years. In potential future phases, the project could also help decarbonise other hard-to-abate industries in the Valencia region. Supply could be targeted at sectors such as chemicals, ceramics and heavy transport.
“Projects like Castellón show that, with the collaboration of all agents in the sector and the appropriate incentives, it is possible to develop a new industrial model based on the green hydrogen value chain,” adds Mario Ruiz-Tagle, ceo of Iberdrola Spain. “The green hydrogen economy is emissions free, electrified, attracts investment and creates quality jobs in the region.”
The estimate is that during construction 500 direct new jobs will be created.
Source:Kallanish
