BP to develop up to 2-GW green H2 cluster around its Spanish refinery

UK oil-and-gas major BP Plc (LON:BP) this week presented its plan to lead a public-private initiative for the development of a green hydrogen cluster in Spain’s Valencia Region, with an ambition to install up to 2 GW of electrolysis capacity by 2030.

The centre of the HyVal cluster will be BP’s refinery in the province of Castellon, where the company aims to produce hydrogen, but also biofuels and renewable energy as part of wider decarbonisation goals for the facility. The whole initiative could see BP invest up to EUR 2 billion (USD 2.12bn) in Castellon by 2030, the company said.

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The whole project will be developed in phases, starting with a least 200 MW of electrolysis at the Castellon refinery. BP expects the first-phase electrolysis plant to be operational in 2027 and be capable of churning out up to 31,200 tonnes of green hydrogen per year.

The second phase would see the plant expanded to up to 2 GW of net installed power and start operation in 2030.

The Castellon refinery currently use grey hydrogen, which BP wants to replace with green to use it as feedstock in biofuel and sustainable aviation fuel production.

The refinery is surrounded by Castellon’s ceramics industry to which BP reached out more than a year ago to forge green hydrogen relationships. The HyVal cluster also has the potential to bring together other industries, such as chemicals and heavy transport, in the Valencia Region, public institutions and research and training centres, BP said.

(EUR 1.0 = USD 1.061)