Iberdrola and BP have agreed to create a joint venture that will develop hydrogen production hubs in Spain, Portugal and the United Kindgom, with a total capacity of up to 600 kt/year, equivalent to about 6 GW of electrolysers, integrated with new renewable power. The two companies aim to finalise both joint venture agreements by the end of 2022, subject to regulatory approvals. The joint venture also aims to produce hydrogen derivatives such as green ammonia and methanol, that can be potentially exported to Northern Europe. Iberdrola and BP´s industrial hydrogen projects under development, as well as new projects, will be part of the agreement, including BP's Castellón refinery.
In April 2021, BP, Iberdrola and Enagas agree to study the feasibility of building, at BP's plant in Castellón, the first phase of a green hydrogen project. It would include a 20 MW electrolyser, scheduled to start operations in 2023, running on energy produced by a 40 MW solar plant. This new project would replace the grey hydrogen that the refinery uses in its biofuel production process. In further stages, the electrolysis capacity could be increased to 115 MW.