Hydrogen
Spain greenlights €211M hydrogen boost for Iberdrola–bp Castellon project
The funding will allow the companies to explore opportunities to expand renewable hydrogen production at bp’s refinery in Castellón
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By ICN Bureau | June 29, 2026
Spain has approved the reallocation of up to €211 million in funding from the Hy2USE IPCEI programme to a major renewable hydrogen project led by Iberdrola España and bp in Castellón.
The decision gives a significant boost to plans to expand renewable hydrogen production at bp’s refinery in Castellón, strengthening a strategic partnership between the two energy groups aimed at accelerating the shift away from natural gas in industrial processes.
The funding will allow the companies to explore opportunities to expand renewable hydrogen production at bp’s refinery in Castellón, the companies have said.
The project is designed to supply cleaner energy solutions for heavy industry, with a focus on sectors such as ceramics and chemicals where emissions are particularly difficult to reduce. Renewable hydrogen is expected to play a central role in cutting carbon emissions across these industries.
Developed in collaboration with the Energy Technology Institute (ITE) in Valencia and supported by an additional €15 million from the NextGenerationEU programme, the facility is expected to begin producing renewable hydrogen before the end of this year. By 2026, it is projected to become Spain’s largest operational green hydrogen plant.
The project reflects Iberdrola’s commitment to innovation and to scaling up renewable technologies that support the electrification of the economy, as per the companies.
The move marks a further step in Spain’s push to scale up green hydrogen infrastructure as part of its wider energy transition strategy.
