bp and Iberdrola have jointly approved the development of a 25MW green hydrogen project at bp's Castellón refinery in Spain, set to be operational by the second half of 2026. This initiative, undertaken through the joint venture Castellón Green Hydrogen S.L., will utilize a 25MW electrolyser powered by renewable electricity, facilitated by a power purchase agreement with Iberdrola, with the aim of producing green hydrogen to support the refinery's transition into an integrated energy hub. The project, set to be supplied by Plug Power's PEM technology, is anticipated to replace a portion of the grey hydrogen currently used by the refinery, resulting in the avoidance of 23,000 tonnes of CO2 emissions annually. The collaboration between the two companies and the participation of the Technology Institute of Energy (ITE) have secured funding of €15 million from the Spanish Recovery, Transformation, and Resilience Plan. The project also aligns with the European Union's NextGenerationEU initiative. Furthermore, the green hydrogen produced may extend beyond the refinery to be utilized in sectors like ceramics, chemicals, and heavy transport in the Valencia region, offering emissions reduction benefits and economic growth. The project's positive sentiment is underscored by statements from bp Energía España's president and Iberdrola Spain's CEO, highlighting the significance of collaboration for advancing green hydrogen technologies and fostering economic and industrial development in the region.