Two billion euros! BP will build a low carbon green hydrogen cluster in Valencia, Spain

Bp has unveiled plans to build a green hydrogen cluster, called HyVal, in the Valencia area of its Castellion refinery in Spain. HyVal, a public-private partnership, is planned to be developed in two phases. The project, which requires an investment of up to €2bn, will have an electrolytic capacity of up to 2GW by 2030 for the production of green hydrogen at the Castellon refinery. HyVal will be designed to produce green hydrogen, biofuels and renewable energy to help decarbonize bp's operations at its Spanish refinery.

"We see Hyval as key to the transformation of Castellion and to supporting the decarbonization of the entire Valencia region," said Andres Guevara, president of BP Energia Espana. We aim to develop up to 2GW of electrolytic capacity by 2030 for green hydrogen production to help decarbonize our operations and customers. We plan to triple biofuel production at our refineries to help meet the growing demand for low-carbon fuels such as SAFs.

The first phase of the HyVal project involves the installation of a 200MW capacity electrolysis unit at the Castellon refinery, which is expected to be operational in 2027. The plant will produce up to 31,200 tonnes of green hydrogen a year, initially used as a feedstock in the refinery to produce SAFs. It will also be used in industrial and heavy transport as an alternative to natural gas, reducing CO 2 emissions by more than 300,000 tonnes per year.

Phase 2 of HyVal involves the expansion of the electrolytic plant until the net installed capacity reaches 2GW, which will be completed by 2030. It will provide green hydrogen to meet regional and national needs and export the remainder to Europe via the Green Hydrogen H2Med Mediterranean Corridor. Carolina Mesa, vice president of BP Spain and New Markets hydrogen, said the production of green hydrogen would be another step towards strategic energy independence for Spain and Europe as a whole.