BP takes FID on initial stage of Spanish green hydrogen project

Oil and gas major BP Plc (LON:BP) has taken a final investment decision (FID) on the first phase of an up to 2-GW cluster project for the production of green hydrogen at its refinery in Castellon, in Spain’s Valencia region.

The company announced the milestone in its financial report for the second quarter of 2024. “At Castellon, together with our joint venture partner, we are taking our first FID to develop and produce industrial scale green hydrogen at our Castellon refinery,” the oil and gas group said.

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The HyVal cluster is set to be installed under a broader plan for the Castellon site, where BP aims to produce hydrogen, biofuels and renewable energy to meet wider decarbonisation goals for the facility. The whole initiative could see the group invest up to EUR 2 billion (USD 2.19bn) in Castellon by 2030, it said previously.

The electrolysis project will be developed in phases. The final phase will see the plant expanded to up to 2 GW of net installed power and start operations in 2030.

In addition, the FID on the 100-MW green hydrogen project at Lingen in Germany is expected to be taken by the end of the year following the approval of European IPCEI funding.

Overall, BP is scaling down its hydrogen and CCUS portfolio from 30 opportunities to five to 10 potential investments that the group can progress this decade.

(EUR 1.0 = USD 1.093)