The Valencian government has granted €76 million under its FEDER programme to support two BP renewable energy initiatives in Castellón. The energy initiatives will span from 2026 to 2029. Out of this funding, €66.3 million will be allocated to Castellón Green Hydrogen phase 2 S.L. for a new renewable hydrogen demonstration facility.
Furthermore, the remaining €9.7 million will be used by BP Energy Spain to advance pre-treatment technologies used in sustainable biofuels. Also, Castellón Green Hydrogen phase 2 operates as a separate BP entity from the original phase 1 joint venture formed with Iberdrola.
Separately, BP and Iberdrola have finished constructing their phase 1 of 25 MW hydrogen facility at the Castellón refinery via Castellón Green Hydrogen S.L. The facility features five 5 MW containerised proton exchange membrane electrolyser units supplied by Plug Power. The facility is expected to start production before the end of 2026. The project is expected to generate up to 2,800 tonnes of green hydrogen annually.