bp and Iberdrola España have initiated the construction of a 25MW green hydrogen plant in Castellón, Spain, with a significant investment exceeding €70m. Through their joint venture, Castellón Green Hydrogen, the project aims to address industrial decarbonisation by producing 2,800 tonnes of green hydrogen annually, which will replace grey hydrogen used at the bp refinery in Castellón. The venture also plans to expand the usage of green hydrogen to other sectors like ceramics, chemicals, and heavy transport in the Valencian community. The plant, touted as Spain's largest, is scheduled to commence operations in the second half of 2026, contributing to a substantial reduction of 23,000 tonnes of CO₂ emissions per year. The construction phases involve earthworks, developing a 20,000m² area near the bp refinery, and the installation of key equipment such as electrolysers, powered by renewable electricity from Iberdrola's wind and photovoltaic farms. Carolina Mesa, bp's vice president of hydrogen for Spain, highlighted the importance of this project in advancing industrial decarbonisation and transforming refineries into integrated energy hubs. Collaboration with the Instituto Tecnológico de la Energía has secured €15m in funding from Spanish and EU programs, emphasizing the green hydrogen value chain development in Spain. Jorge Palomar Herrero, Iberdrola Hydrogen Development director, noted the project's role in promoting the hydrogen value chain and bringing in renewable energy to meet EU standards for green hydrogen production. The partnership with Imefy for a 37MVA transformer underscores the commitment to green technology. Overall, the initiative reflects a positive step towards sustainable energy transition and industrial decarbonisation in Spain.