bp has launched the green hydrogen cluster of the Valencia region (HyVal) at its Castellón refinery in Spain. The public-private collaborative initiative is intended to be based around the phased development of up to 2GW 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 Euro in Castellón by 2030.
Green hydrogen – generated by the electrolysis of water using renewable power – will support 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 tonnes a year 2030. Green hydrogen will also be used as a feedstock in biofuel production, specifically of sustainable aviation fuel (SAF).
President of bp Energía España, Andrés Guevara said Hyval is key to Castellón’s transformation and critical to supporting decarbonisation across the Valencia region.
“We aim to develop up to 2GW 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.”
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 200MW capacity at Castellón refinery. This initial stage would be expected to produce up to 31,200 tonnes of green hydrogen per year. Use of this green hydrogen to replace natural gas is estimated to be able to avoid more than 300,000 tonnes of CO2 emissions per year 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 (Sustainable Aviation Fuel), 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 2GW of net installed power. Green hydrogen production from such a world-scale plant could support both regional and national demand, as well as positioning 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 Castellon refinery is well-connected with national and international markets, enabling it to support decarbonisation of hard-to-abate industries in Spain, like 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. “
