BP and Iberdrola could expand their 25MW green hydrogen plant at the British oil major’s refinery in Spain, after the Spanish government approved the reallocation of €211m ($239.5m) in subsidies.
The pair said they will explore opportunities to increase green hydrogen at BP’s Castellón refinery, where they have completed construction of a 25MW electrolysis plant that will replace grey hydrogen with green.
>> In Other News: BioCirc Opens World’s Largest Biogas-Based CCS Facility in Denmark
It comes after Spain’s Ministry for Ecological Transition and Demographic Challenge signed off on the duo using €211m of funding originally awarded to projects under the EU’s Important Projects of Common European Interest (IPCEI) Hy2Use scheme in 2022.
Spain had selected seven projects for €794m ($901m) in IPCEI Hy2Use funding in 2024. However, neither BP nor Castellón were included on the list.
It’s unclear which project or projects have dropped out of the scheme.
The first 25MW phase has already been granted €15m ($17m) from the Spanish government.
The companies said the Plug Power electrolyser plant had been completed, with BP and Iberdrola joint venture Castellón Green Hydrogen now undertaking testing.
They expect the plant to begin production before the end of 2026.
In 2023, BP said it would build “at least” 200MW of electrolysis capacity at the site by 2027, with intentions of scaling up to 2GW by 2030.
More broadly, the oil and gas major has been quickly pivoting back towards fossil fuels, which will see it limit further hydrogen and carbon capture projects.
The firm recently pulled out of a large-scale UK blue hydrogen project, as well as a major planned green hydrogen and renewable hub in Australia’s Pilbara region.
It also previously said it had stopped 18 early-stage hydrogen projects.
Subscribe to the newsletter
Daily decarbonization data and news delivered to your inbox
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Latest issues
-
Mombak Delivered Google's Amazon Carbon Credits Early
Inside This Issue 🌳 Brazil's Mombak Delivers Early to Google, Other Buyers in Boost for Carbon Removal Credits 🛫 Two Years Later, Delta's Minnesota SAF Plant Opens 💧 Delaware Hydrogen Company Targ...
-
Can Amogy Power Data Centers With Ammonia?
Inside This Issue ⚡ Amogy and 2G Energy Successfully Demonstrate Integrated Ammonia-to-Power Generation With Natural Gas Multi-Fuel Capability ✈️ Argus Launches SAF Emissions Reduction Indexes and...
-
Ontario Nickel Project Could Add $70 Billion
Inside This Issue 🍁 Canada Nickel Secures Federal Approval for Crawford Nickel Project 🏛️ Whitehouse, Coons, Peters, and Tonko Reintroduce Carbon Dioxide Removal Bill 🌲 Plumas County's Top Biomass...
Company Announcements
-
Major financing milestone supported by Power Sustainable advances Canada's first biofuel plant with integrated CO2 liquefaction technology toward commissioning and commercial operations. Convertus...
-
GHG Protocol Announces Key Standard Development Updates
WASHINGTON, D.C. (July 29, 2026) – Greenhouse Gas Protocol (GHGP) today announces a series of updates to its corporate standards as it continues to strengthen its governance, leadership, and instit...
-
Crew Carbon Signs Offtake Agreement With Microsoft for Wastewater Carbon Removal
The agreement further validates CREW’s high-quality credits, advancing industrial carbon removal at scale. BROOKLYN, N.Y. — CREW Carbon, Inc. (“CREW”) today announced an offtake agreement with Mic...
-
Haffner Energy Has Achieved a Key Qualification Milestone for Its New Generation H6
Haffner Energy has achieved a key qualification milestone for its new H6 generation technology. Confirmation of stable syngas production reinforces the H6’s commercial roll-out trajectory. Vitry...