BP Confirms Major Green Hydrogen Plant in Spain

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--BP Plc (NYSE:BP) (London, England) has confirmed plans to develop a 2-gigawatt (GW) renewable hydrogen cluster at its existing refinery in Castellón, Spain.

The 2 billion-euro (US$2.16 billion) HyVal project is a public-private partnership that will see the eventual deployment of 2 GW of electrolysers by 2030 that will replace the fossil-based feedstock used currently to produce hydrogen. It will also boost the production of biofuels. The first phase, which will be completed by 2027, will involve the installation of an electrolysis plant with at least 200 megawatts (MW) of capacity at Castellón. Green hydrogen--generated by the electrolysis of water using renewable power--will support decarbonization of the refinery's operations and replace its current use of "gray" hydrogen generated from natural gas. This initial stage is expected to produce up to 31,200 tonnes of green hydrogen per year which will be used to replace natural gas and offset more than 300,000 tonnes of carbon dioxide (CO2) emissions per year. It will be used first in the refinery and then in thermo-intensive industries and heavy transport as well as a feedstock for the production of sustainable aviation fuel (SAF). bp expects to triple its biofuels production at the refinery to 650,000 tonnes a year 2030.

The second phase of the project will boost the electrolysis output 10-fold to 2 GW and green hydrogen production to 500,0000-700,000 tonnes per year by 2030. Additional green hydrogen will be used across the Valencia region in hard-to-abate industries, including as a combustion fuel in the production of ceramics and for the production of ammonia. The expansion will help make the Valencia region of Spain a major national and European hub for green hydrogen production. bp expects that it will export green hydrogen to the rest of Europe through the proposed green hydrogen pipeline, H2Med, which would stretch from Spain and Portugal into France and across to Germany.

Industrial Info is tracking 203 active hydrogen projects in Spain with a combined investment value of almost US$14 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for the reports.

Launching Hyval with Spain's Minister of Industry, Commerce and Tourism Andrés Guevara, President of BP Energía España, 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 2 GW 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."

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).