A further €66.3m ($77.1m) has been allocated to BP and Iberdrola’s green hydrogen plans in Spain by Valencia’s regional government.
The energy firms’ Castellón Green Hydrogen Phase 2 SL (CGH) joint venture (JV) secured funds to build its “Tractor Project 1: large pilot demonstrator of renewable hydrogen.”
While details of the Tractor Project 1 remain thin, according to the Valencian government, it will facilitate both “industrial self-consumption and supply to neighbouring businesses.”
No timeline, expected total investment, or output capacity were disclosed. H2 View has reached out to BP for further information.
The project will be accompanied by a sustainable fuels pretreatment facility, Tractor Project 2, for which BP’s Spain subsidiary was awarded €9.7m ($11.3m) in the same tranche of investments.
CGH’s previous activity has been limited to its 25MW green hydrogen plant at BP’s oil refinery in Castellón, planned to replace 2,800 tonnes of grey hydrogen with green hydrogen annually.
BP and Iberdrola were also awarded €211m from redirected EU’s Important Projects of Common European Interest (IPCEI) funds to explore opportunities to increase green hydrogen production at the refinery. It was originally planned for scaling to 200MW.
The first 25MW phase has already been granted €15m ($17m) from the Spanish government and is expected to begin production before the end of the year.
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