BP, one of the world’s leading oil companies, embarked on a journey towards green hydrogen production in Castelló, Spain, with grand promises of decarbonization and sustainability.
However, as time passes, questions loom about the progress and execution of this ambitious initiative. The Serrallo refinery in Castelló was slated to be a cornerstone of BP’s green transition, but details about its actual transformation remain elusive.
BP’s announcement of its partnership with Iberdrola for the production of green hydrogen in Castelló stirred excitement more than a year ago. However, it seems that the formalization of this joint venture is still pending. Delays have accumulated, leaving many wondering when this groundbreaking project will truly take off.
Initially, the production was slated to commence in 2024, contingent upon European funds. In November of the previous year, BP Energía’s President, Andrés Guevara de la Vega, pushed the commissioning date to 2025. Interestingly, at that time, the project’s capacity was estimated at 60 MW, considerably higher than the current 25 MW projection.
Once the first phase is complete, BP plans to scale up the hydrogen production plant to 200 MW of electrolysis power. By 2027, the company aims to produce approximately 31,200 tons of green hydrogen and 400,000 tons of biofuel annually through this 200 MW electrolyzer.
Despite these lofty goals, the actual details of this initiative remain shrouded in mystery. Even in recent presentations to other companies, Vicente Mut, Head of Finance at the BP refinery in Castelló, provided little insight into the next steps or the current status of the project.
BP’s overarching strategy involves continuing to invest in the fossil hydrocarbon market while promoting low-carbon energy sources. Mut emphasized that society’s demand for fossil hydrocarbons is still significant, but the company acknowledges the need for a transition. Spain, among eight large countries, has been selected for significant investments in low carbon and hydrogen initiatives.
The Castelló refinery, which has been handling hydrogen on a large scale for nearly six decades, is well-positioned to lead this transition. While it has historically used gray hydrogen of fossil origin, the shift to green hydrogen presents new opportunities for decarbonization.
By 2025, when the 25 MW electrolyzer is expected to be operational, the refinery will increase its renewable energy consumption. This initial phase will reduce CO2 emissions by an estimated 3.25%, a modest but crucial step. Ceramic companies in Castellón could be among the first beneficiaries of this green hydrogen production.
Beyond this, the plan is to expand the electrolyzer to 200 MW, completely replacing gray hydrogen consumption with green hydrogen within the refinery.
BP’s ambitions extend beyond local industry needs. The third phase, slated for 2030, envisions an expansion of the electrolyzer to 2 gigawatts. This would not only cater to local industries but also open the door to hydrogen exports to other parts of Europe and the world. Infrastructure developments like the H2Med gas pipeline could play a pivotal role in realizing these ambitions.
While BP’s green hydrogen journey in Castelló holds significant promise, transparency and timely execution remain crucial to meeting both local and global decarbonization goals. The world watches with anticipation as this major player navigates the complex path towards a more sustainable energy future.
