bp has launched the HyVal green hydrogen cluster in Valencia, a public-private collaborative initiative that aims to develop up to 2GW of electrolysis capacity by 2030 for green hydrogen production.
The initiative is led by bp and will play an instrumental role in decarbonizing the Castellón refinery’s operations, including the use of green hydrogen, biofuels, and renewable energy. The transformation could see bp invest up to 2 billion Euro in Castellon by 2030.
Green hydrogen, generated by the electrolysis of water using renewable power, will replace the refinery’s current use of ‘grey’ hydrogen, which is generated from natural gas, supporting the decarbonization of its operations. The production of biofuels is expected to increase three-fold, to 650,000 tonnes a year by 2030. Green hydrogen will also be used as a feedstock in biofuel production, specifically in the production of sustainable aviation fuel.
HyVal was launched by bp Energía España President, Andrés Guevara, in the presence of Spain’s Minister of Industry, Commerce and Tourism, Reyes Maroto, the president of the Generalitat Valenciana, Ximo Puig, and the mayor of Castellón, Amparo Marco.
The green hydrogen produced by HyVal will also be used in key hard-to-abate industries in the Valencia region, such as the ceramic and chemical industries, replacing the natural gas used in their processes, as well as in heavy transport. HyVal aims to develop Valencia into a leader in green hydrogen production in Spain, and its hydrogen production is expected to be developed in phases.
“The production of green hydrogen will be another step in strategic energy autonomy for Spain and more widely for Europe.” Carolina Mesa, bp’s vice president of Hydrogen, Spain, and New Markets.
“The production of green hydrogen will be another step in strategic energy autonomy for Spain and more widely for Europe,” she added.
The first phase, expected to be operational in 2027, will involve the installation of an electrolysis plant with a capacity of at least 200MW at the Castellón refinery. This initial stage is expected to produce up to 31,200 tonnes of green hydrogen per year, which could help avoid more than 300,000 tons of CO2 emissions per year when used first in the refinery and then in thermo-intensive industries and heavy transport.
In the second phase, which could be completed in 2030, the electrolysis plant would be expanded to reach a capacity of up to 2GW of net installed power, supporting both regional and national demand and positioning Valencia to export green hydrogen to the rest of Europe through the Mediterranean corridor of green hydrogen H2Med.
The Valencia region already has strategic infrastructure and facilities, including ports, and wind and solar power generation capacity, that can play a critical role in developing a green hydrogen economy. The initiative also includes the potential participation of companies from various industries in the region, public institutions, and research and training centers, which is expected to create up to 5,000 direct, indirect, and induced jobs in the region.
bp is committed to building a leading position in green hydrogen globally and aims to produce 0.5-0.7 million tonnes a year of mostly green hydrogen by 2030, with several green hydrogen projects underway in the UK, Australia, and Germany.