BP to transform Castellón refinery into leading green hydrogen centre

The company plans to invest up to 2 billion euros and create up to 5,000 jobs in the region

BP has announced the transformation of its Castellón refinery into a green hydrogen production facility. The future green hydrogen cluster in the Valencia region (HyVal) is a public-private collaborative initiative that will be implemented in two phases, reaching two gigawatts of electrolysis capacity by 2030.

The transformation of the plant will enable its decarbonisation. The refinery produces hydrogen from natural gas at present and this feedstock will be progressively replaced by electrolysis of water using renewable energy, thereby changing from grey hydrogen to green hydrogen production.

Tripling production
The UK company will not only decarbonise the refinery's operations, but it also plans to triple its output when it is fully operational in 2030. This means it will be generating 650,000 tonnes of green hydrogen a year. Some of this fuel will be used at the plant itself as feedstock for the production of biofuels for sustainable aviation.

With an investment that could reach 2 billion euros, HyVal aims to make the Valencia Region a leader in green hydrogen generation in Spain. Its production will at the same time, serve to decarbonise local industries such as ceramics, by substituting natural gas, in chemical industries thanks to the production of green ammonia, and heavy transport.

National and international markets
The Castellón refinery is at the same time well connected to national and international markets thanks to its port infrastructure and other strategic facilities. Led by BP, HyVal will involve other companies in the region, as well as public institutions and research and training centres.

The initiative will create around 5,000 direct, indirect and induced jobs. In the initial phase, the expectation is to reach an electrolysis capacity of 200 megawatts by 2027, producing up to 31,200 tonnes of green hydrogen per year. The second phase will take production up to the stated target. According to Carolina Mesa, BP's vice president for Hydrogen, Spain and New Markets, this is another step towards achieving “strategic energy autonomy for Spain, and more broadly, for Europe”.

BP Spain president Andrés Guevara says that “HyVal can play an important role in Valencia's efforts to decarbonise, and help support thousands of industrial jobs across the region”.

Photo: BP