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BP launches low-carbon green hydrogen cluster in Spain

Published by , Editorial Assistant
Global Hydrogen Review,

BP has launched the green hydrogen cluster of the Valencia, Spain region (HyVal) at its Castellón refinery. Led by BP, this public-private collaborative initiative is intended to be based around the phased development of up to 2 GW of electrolysis capacity by 2030 for producing green hydrogen at BP’s refinery.

HyVal is expected to play an instrumental role in decarbonising the operations of BP's Castellón refinery. Its transformation - including green hydrogen, biofuels and renewable energy - could see BP invest a total of up to €2 billion in Castellón by 2030.

Green hydrogen – generated by the electrolysis of water using renewable power – will support the decarbonisation of the refinery’s operations, replacing its current use of grey hydrogen generated from natural gas.

Its production of biofuels is expected to increase three-fold, to 650 000 tpy by 2030. Green hydrogen will also be used as a feedstock in biofuel production, specifically of sustainable aviation fuel (SAF).

HyVal was launched by Andrés Guevara, President of BP Energía España, in a presentation attended by more than 200 people, including Spain’s Minister of Industry, Commerce and Tourism, Reyes Maroto, President of the Generalitat Valenciana, Ximo Puig, and Mayor of Castellón, Amparo Marco.

Andrés Guevara said: “We see Hyval as key to Castellón’s transformation and critical to supporting decarbonisation across the Valencia region. We aim to develop up to 2 GW of electrolysis capacity by 2030 for green hydrogen production, helping decarbonise our operations and customers. And we plan to triple the refinery’s production of biofuels to help meet the growing demand for lower-carbon fuels such as SAF. We believe HyVal can play an important role in Valencia region’s efforts to decarbonise and help support thousands of industrial jobs across the region.”

In addition to being used by bp at the refinery, the green hydrogen produced will also be used in key hard-to-abate industries in the Valencia region, such as the ceramic industry replacing the natural gas used in their processes, chemical industries for the production of green ammonia and in heavy transport.

HyVal aims to support the development of Valencia region into a leader for the production of green hydrogen in Spain. Its hydrogen production is expected to be developed in phases.

The first, anticipated to be operational in 2027, will involve the installation of an electrolysis plant with at least 200 MW capacity at Castellón refinery. This initial stage would be expected to produce up to 31 200 tpy of green hydrogen. Use of this green hydrogen to replace natural gas is estimated to be able to avoid more than 300 000 tpy of CO2 emissions when used first in the refinery and then in thermo-intensive industries and heavy transport. This green hydrogen will also be used as a feedstock for the production of SAF at the refinery.

In the second phase, which could be completed in 2030, the electrolysis plant would be expanded to reach a capacity of up to 2 GW of net installed power. Green hydrogen production from such a world-scale plant could support both regional and national demand, and position the Valencia region to export green hydrogen to the rest of Europe through the Mediterranean corridor of green hydrogen H2Med.

The Valencia region is already home to strategic infrastructure and facilities that can play a critical role in developing a green hydrogen economy, including ports and wind and solar power generation capacity. BP’s Castellón refinery is well-connected with national and international markets, enabling it to support the decarbonisation of hard-to-abate industries in Spain, such as transport and chemicals.

Carolina Mesa, BP’s Vice President Hydrogen, Spain and New Markets, added: "The production of green hydrogen will be another step in strategic energy autonomy for Spain and more widely for Europe".

A broad initiative, led by BP, HyVal also includes the potential participation from companies from various industries in the region, public institutions and research and training centres. It is anticipated that the full development of HyVal will create up to 5000 direct, indirect and induced jobs in the region.

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