bp Energía España and Iberdrola España SA have announced a 50-50 joint venture to build a green hydrogen plant at bp's refinery in Castellón, Spain. The project, approved for final investment decision in late July 2024, will involve the construction of a 25-Mw electrolyzer capable of producing 2,800 tonnes/year of green hydrogen. Scheduled to start operations in the second half of 2026, the plant aims to reduce carbon dioxide emissions at the site by 23,000 tpy. The green hydrogen production will be powered by renewable electricity supplied by Iberdrola España through a power purchase agreement. The project is in line with the European Commission's requirements for Renewable Fuels of Non-Biological Origin (RFNBO), with Plug Power Inc. supplying electrolyzer modules for the production process. Additionally, the initiative is part of bp's strategy to decarbonize the Castellón refinery and transform it into an integrated energy hub. The project has received €15 million in funding from the Spanish Recovery, Transformation and Resilience Plan. bp also plans to explore future opportunities to expand green hydrogen capacity at the site to cater to hard-to-abate users in the Valencia region, such as those in the ceramics, chemical, and heavy transport industries. The initiative is part of bp's commitment to carbon neutrality by 2050 and its goal to develop up to 2 GW of electrolysis capacity through the Valencian Community Hydrogen Cluster (HyVal) by 2030. The HyVal initiative, established in collaboration with the Valencian government, aims to promote the renewable hydrogen economy in Spain and could involve a total investment of up to €2 billion for the transformation of the Castellón refinery.