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    bp-Iberdrola Joint Venture Contracts 25 MW Plug Power Electrolyzers to Produce Green Hydrogen at Spanish Refinery

    Sept. 18, 2024
    Refinery owners and operators hope to reduce carbon emissions by 23,000 metric tons per year by converting to green hydrogen and reducing the amount of gray H2 currently produced at the site.
    Plug Power electrolyzers in South Korea. Image credit Plug Power
    Plug Power electrolyzers in South Korea. Image credit Plug Power

    Oil and gas global giant bp is aiming to decarbonize part of its Spanish refinery operations by bringing in Plug Power's proton exchange membrane electrolyzers to generated green hydrogen.

    Plug Power secured the 25 MW order from bp and Iberdrola’s joint venture Castellón Green Hydrogen S.L refinery to be installed at bp’s Castellón refinery in Valencia. Refinery owners and operators hope to reduce carbon emissions by 23,000 metric tons per year by converting to green hydrogen and reducing the amount of gray H2 currently produced at the site.

    The refinery currently uses natural gas to generate hydrogen, which itself has no carbon in its molecular chain. To create green hydrogen, the H2 is produced when an electrolyzer splits the hydrogen from water, and the electrolyzer is powered by a carbon-free resource such as solar, battery storage, hydro or nuclear.

    Gray hydrogen is H2 created through steam reforming or gasification of methane, which is more carbon intensive.

    Plug Power’s PEM electrolyzers will replace part of the gray hydrogen currently produced, according to the announcement. The project and electrolyzer installment is expected to be completed by late 2026.

    "The selection of Plug's technology for this project serves as a clear example of our established industry expertise and proven technology,” Plug CEO Andy Marsh said in a statement. "Industry experts have highlighted the immense market potential for green hydrogen in Europe as being a key factor for reaching European Union decarbonization targets. This presents a significant opportunity for Plug, and we have the market knowledge and technology readily available to make a substantial impact.”

    The electrolyzers are manufactured at Plug Power’s gigafactory in Rochester, New York. The deal with bp and Iberdrola's joint venture could expand to 2 GW of electrolysis capacity eventually, according to Plug.

    Last year, bp announced plans to create a low-carbon green hydrogen cluster in the Valencia region. The company could invest up to 2 billion Euros ($2.2B US) on the decarbonization plan around increasing hydrogen, renewables and biofuels production by 2030.

    In confirming that investment and joint venture with Iberdrola earlier this month, Felipe Arbelaez, bp’s senior vice president of hydrogen and carbon capture and storage, defined the move as pivotal for the company’s H2 goals.

    “This is bp’s first investment decision for an industrial-scale project and represents a significant advancement for our hydrogen operations,” Arbelaez said at the time. “This project exemplifies how partnerships can drive forward a nascent energy source crucial for decarbonizing industry. The Castellón refinery will play a leading role in this transformation.”

    The 25 MW electrolyzers will be powered by solar photovoltaic and wind energy through a power purchase agreement with renewable project developer Iberdrola.

    About the Author

    Rod Walton, EnergyTech Managing Editor | Senior Editor

    For EnergyTech editorial inquiries, please contact Managing Editor Rod Walton at [email protected].

    Rod Walton has spent 15 years covering the energy industry as a newspaper and trade journalist. He formerly was energy writer and business editor at the Tulsa World. Later, he spent six years covering the electricity power sector for Pennwell and Clarion Events. He joined Endeavor and EnergyTech in November 2021.

    Walton earned his Bachelors degree in journalism from the University of Oklahoma. His career stops include the Moore American, Bartlesville Examiner-Enterprise, Wagoner Tribune and Tulsa World. 

    EnergyTech is focused on the mission critical and large-scale energy users and their sustainability and resiliency goals. These include the commercial and industrial sectors, as well as the military, universities, data centers and microgrids. The C&I sectors together account for close to 30 percent of greenhouse gas emissions in the U.S.

    He was named Managing Editor for Microgrid Knowledge and EnergyTech starting July 1, 2023

    Many large-scale energy users such as Fortune 500 companies, and mission-critical users such as military bases, universities, healthcare facilities, public safety and data centers, shifting their energy priorities to reach net-zero carbon goals within the coming decades. These include plans for renewable energy power purchase agreements, but also on-site resiliency projects such as microgrids, combined heat and power, rooftop solar, energy storage, digitalization and building efficiency upgrades.

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