bp and Iberdrola have recently announced a final investment decision on a 25MW green hydrogen project at the Castellón refinery in Spain. Originally, plans for a 200MW project were in place, but the current decision indicates a shift in focus. The project, which benefits from a €15m subsidy, aims to replace grey hydrogen with green hydrogen at the Spanish refinery. Each company will fund half of the project, expecting to produce 2,800 tonnes of green hydrogen annually and reduce 23,000 tonnes of CO2 emissions per year. Iberdrola will provide 200GWh per year of solar and wind energy through a power purchase agreement using Plug Power PEM electrolysers. The plant is anticipated to be operational by the second half of 2026. bp's Senior Vice-President, Felipe Arbelaez, sees this decision as a significant advancement for their hydrogen business, emphasizing the focus on value and sustainable projects. While the project has been scaled back from the initial 200MW plan, bp is open to expanding its capacity in the future. This development aligns with bp's strategy to invest in hydrogen and CCUS projects, with plans for up to 10 projects within this decade. The move underlines the company's commitment to sustainability and the energy transition towards cleaner alternatives.