Spain’s Green Hydrogen Future Begins: Iberdrola-BP Joint Venture Commissions Nation’s Largest 25 MW Plant

July 5, 2026

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Overview

The Iberdrola and bp joint venture, Castellón Green Hydrogen, has commenced commissioning of its 25 MW green hydrogen plant at the Castellón refinery, slated to become Spain’s largest by late 2026. This facility, featuring five 5 MW Plug Power PEM electrolyzers, will produce approximately 2,800 tons of green hydrogen annually, directly replacing grey hydrogen to significantly reduce CO2 emissions. Supported by the EU’s NextGenerationEU initiative, the project marks a pivotal step towards industrial decarbonization and fostering a green hydrogen economy in Europe.

In Depth

Background

This project stands as a cornerstone of Spain’s and the European Union’s ambitious decarbonization targets and green hydrogen strategy. It has secured significant financial backing from the European Union’s NextGenerationEU recovery fund, underscoring the critical role of public support in accelerating energy transitions. The strategic shift to green hydrogen within energy-intensive industries, such as oil refining, offers immense potential for substantial CO2 emissions reductions. This initiative thus symbolizes a broader movement away from fossil fuel dependency towards sustainable industrial operations.

Key Findings

The Castellón Green Hydrogen joint venture, formed by Iberdrola and bp, has initiated commissioning tests for its 25 MW green hydrogen plant located at the Castellón refinery in Spain. This substantial facility is projected to become the largest green hydrogen production site in Spain by the end of 2026. It is engineered to deliver approximately 2,800 tons of high-purity green hydrogen annually, which will directly replace the grey hydrogen currently utilized at the refinery, leading to a significant reduction in associated CO2 emissions.

Technically, the plant integrates five advanced 5 MW PEM (Proton Exchange Membrane) electrolyzer modules supplied by Plug Power. These electrolyzers leverage renewable electricity to efficiently produce green hydrogen through water electrolysis. PEM technology is highly regarded for its compact design, rapid start-up, and dynamic shutdown capabilities, making it particularly well-suited for seamless integration with intermittent renewable energy sources. The entire facility is being integrated into the existing infrastructure of the Castellón refinery, ensuring direct utilization of the produced hydrogen and optimizing the supply chain.

The operationalization of this facility represents a pivotal milestone for Spain’s nascent green hydrogen economy. While initially slated to supply the refinery, Castellón Green Hydrogen has articulated plans for future expansion into other industrial sectors and mobility applications. The successful deployment of such large-scale projects is anticipated to accelerate green hydrogen adoption across Europe, serving as a viable model for commercial scale and stimulating further domestic and international investment, as well as technological innovation, thus providing a powerful impetus towards realizing a hydrogen society.

Source: https://www.pv-magazine.com/2026/07/01/tests-begin-at-spains-largest-green-hydrogen-facility/

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