BP and Iberdrola’s joint venture, HyVal, has reached a final investment decision for a 2GW green hydrogen project. The project is located at the Castellon refinery in Valencia, Spain. It aims to produce industrial-scale green hydrogen in phased development, reaching 2GW by 2030.
Key Highlights:
- BP will lead the public-private collaborative initiative, expected to become operational in 2027.
- The first phase will install at least 200MW of electrolysis capacity, producing up to 31,200 tonnes annually.
- The project could create sustainable aviation fuel and green hydrogen while supporting BP’s decarbonisation efforts.
Earlier this year, BP held investments until the government delivered promised grants. The Spanish Prime Minister recently announced a €2.3bn package to support green hydrogen and renewable energy.
BP’s Other Green Hydrogen Projects and Financial Performance
BP’s Lingen, Germany, project was recognized as an Important Project of Common European Interest (IPCEI). It secured funding to progress with the 100MW project. An FID is expected for the end of 2024.
In Q2 2024, BP revealed a $2.8bn profit, an increase from Q1 ($2.7bn). The company is reducing opportunities in hydrogen and CCUS to “five-or-10 potential investments” this decade. BP’s gas and low carbon energy underlying profit was down on Q1, reflecting average trading results.
CEO Murray Auchincloss stated, “Our businesses continue to operate safely and efficiently while building momentum in our drive to 2025.”
Last week, BP and Aberdeen City Council reached FID on a 300-tonne green hydrogen hub, planned for 2026. Construction work is anticipated to begin before the year’s end.
