Iberdrola announces latest green hydrogen project with BP and Enagas

Facebook
Twitter
LinkedIn
Reddit
Email
Ignacio Galán, CEO of Iberdrola. Image: Iberdrola.

Spanish energy giant Iberdrola has partnered with oil and gas majors bp and Enagas on a feasibility study to develop a large-scale green hydrogen project in Valencia.

The project will be based at bp’s refinery in Castellón, replacing the grey hydrogen that is currently used in the production of biofuel.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

It will be comprise of a 20MW electrolyser powered by renewable energy, including a 40MW solar PV system, although it is hoped that the electrolyser’s capacity could be scaled up to 115MW at a later stage.

The project, which will require a US$90 million investment to construct, could start commercial operations in 2023, according to a statement from Iberdrola.

Carlos Barrasa, bp Spain’s chairman, said the study “reinforces our commitment to hydrogen as a fuel of the future”.

It is the second green hydrogen partnership Iberdrola has announced this month. The company said it is also planning to build a solar-plus-hydrogen power project at ceramic tile maker Porcelanosa’s factory in Villarreal to decarbonise its production process. The company revealed plans to form a new business unit focused on hydrogen last September that will use 100% green energy in the electrolysis process, in a bid to respond to the electrification and decarbonisation needs of industry and heavy transport.

Ángeles Santamaría, Iberdrola Spain’s chief executive, said the company will focus its green hydrogen research and development on sectors that are “difficult to decarbonise”.

“Together, we will contribute to advancing the technological maturity of green hydrogen, turning it into a competitive solution for the medium-term decarbonisation of industry and heavy transport”.

Marcelino Oreja, Fot Enagas’ chief executive, added that collaboration between companies, administrations and institutions is “essential for these projects to become a reality, and this is a clear example of joint co-operation.”

Energy companies such as Iberdrola and LONGi Green Energy have thrown their weight behind green hydrogen development in the past year as renewable energy prices have fallen and become competitive with fossil fuels. A recent study from BloombergNEF claims that green hydrogen could become cheaper than natural by 2050, falling by 85% over the next 30 years. The European Union launched its green hydrogen strategy last year, while large-scale green hydrogen projects have also cropped up in SpainAustraliaFrance and Saudi Arabia in recent months.

Last month, Lightsource bp, bp’s renewable energy joint venture, announced it will spend close to £20 million of government funds pairing a 20 – 50MW utility-scale solar array with a battery energy storage facility, which will then be used to power an electrolyser, generating green hydrogen for use by a local steel manufacturer in the UK.

2 December 2025
Málaga, Spain
Understanding PV module supply to the European market in 2026. PV ModuleTech Europe 2025 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of module supplier selection; product availability, technology offerings, traceability of supply-chain, factory auditing, module testing and reliability, and company bankability.

Read Next

October 6, 2025
An expert panel has identified a series of grid failures that led to April's unprecedented power outage in Spain and Portugal, ruling out renewables as the leading cause.
October 2, 2025
Spanish waste management company Trabede and energy firm Greening Group will build a solar module recycling plant in Granada, Andalusia, Spain.
September 19, 2025
EdgeMode has acquired a portfolio of data centre assets in Spain, with plans to build a 300MW solar, 1.2GWh storage facility at the sites.
September 17, 2025
Spanish IPP Velto Renewables has acquired a portfolio of 53 operational solar assets in Spain with a combined capacity of 260MW.
September 17, 2025
For the third year in a row, self-consumption installs have fallen in Spain, with 611MW of new additions in the first half of 2025, according to a report from trade body APPA Renovables.
September 9, 2025
Iberdrola has signed a 77MW power purchase agreement (PPA) with Italian grocery retail group Selex Gruppo Commerciale.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 21, 2025
New York, USA
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK