BP and Iberdrola Collaborate with Imefy to Propel Spain’s Largest Green Hydrogen Plant

Pioneering Green Hydrogen in Castellón

BP and Iberdrola have joined forces to advance Spain’s renewable energy goals with the launch of the country’s largest green hydrogen plant. Set to begin operations in the second half of 2026, the Castellón-based facility will rely on a 25MW electrolyzer powered exclusively by renewable electricity. This initiative aims to reduce carbon emissions at BP’s Castellón refinery, ultimately transforming it into an integrated energy center.

The centerpiece of this operation—a three-phase power transformer—will be manufactured and supervised by Toledo-based Imefy, solidifying the project’s commitment to Spanish industrial innovation. The contract with Imefy underscores BP and Iberdrola’s emphasis on fostering domestic solutions and strengthening the renewable hydrogen value chain within Spain.

Imefy’s Role and Transformative Green Technology

Imefy’s contribution to this project is a state-of-the-art transformer with 37MVA capacity and a transformation ratio of 66/30kV. This vital equipment will handle the immense energy demands required to sustain the plant’s green hydrogen production. Manufacturing and delivery are slated for the first quarter of 2026. Additionally, Imefy will oversee the assembly and commissioning phases, ensuring a seamless integration of their systems into the broader energy network.

Image Credit Imefy

Imefy’s expertise lies in developing dielectric liquid distribution transformers that prioritize sustainability and efficiency. The company has consistently demonstrated its ability to innovate and support renewable energy transitions with cutting-edge technology, solidifying its reputation as a reliable partner for projects aiming for carbon-neutral goals.

Recent Milestones from Imefy

Imefy’s advancements in energy transformation are not limited to Spain. Recently, the company secured a three-year contract with Stadtwerke Düsseldorf, a major utility provider in Germany, for the supply of distribution transformers. This collaboration enhances their presence in European markets while supporting the sustainable energy goals of one of Germany’s energy leaders.

Simultaneously, Imefy has achieved another milestone by delivering its first transformer order for the Island of Martinique. This achievement exemplifies the company’s capability to deliver specialized solutions even to remote regions, paving the way for global energy transformation.

BP’s Latest Hydrogen Projects: Green Hydrogen Plant in Germany and U.S. Hydrogen Hub

Among its key projects is the development of a 100MW green hydrogen plant at its refinery in Lingen, Germany. Scheduled for commissioning in 2027, this plant is part of BP’s strategy to integrate green hydrogen into existing infrastructure and industrial processes. Supported by funding from the Important Projects of Common European Interest (IPCEI) program, the facility has the capacity to produce up to 11,000 tonnes of green hydrogen annually. The hydrogen will serve BP’s refineries and external industrial clients in Europe, providing a clean alternative to carbon-intensive fuels. Furthermore, this project will be connected to Germany’s expansive 9,040km hydrogen core network, ensuring robust integration into the region’s energy grid.

Meanwhile, in northwest Indiana, BP is spearheading the Midwest Regional MachH2 hydrogen hub at its Whiting Refinery. This ambitious project is poised to become one of the largest hydrogen hubs in the United States, requiring an investment of $6–9 billion. The initiative, which receives backing from the Department of Energy’s $1 billion allocation under its hydrogen hub program, aims to produce “blue hydrogen” by utilizing fossil fuels while capturing and storing carbon emissions underground. The hub will play a critical role in decarbonizing traditionally hard-to-electrify industries, such as steelmaking and oil refining, across Indiana, Illinois, and Michigan.

The economic implications of the Whiting project are profound. Expected to employ more than 16,000 skilled workers over its multi-year construction timeline, it marks a major investment in local economies and workforce development. Additionally, peripheral infrastructure projects, including hydrogen pipeline extensions and transport terminals, will further stimulate regional industries and create new maintenance and operational roles.

How Castellón’s Hydrogen Plant Supports Spain’s Renewable Goals

The Castellón hydrogen plant is a €70 million investment under the auspices of Castellón Green Hydrogen, a joint venture between Iberdrola España and BP. One of its primary objectives is to replace grey hydrogen currently used at the refinery with green hydrogen produced through water electrolysis. By using renewable electricity, this process aligns with European Renewable Fuels of Non-Biological Origin (RFNBO) standards.

Key industries in the Valencian community, such as ceramics and heavy transport, are poised to benefit from the hydrogen produced. These sectors face significant decarbonization challenges, given their reliance on intense energy processes traditionally fueled by natural gas. The green hydrogen output of 2,800 tonnes per year is anticipated to significantly offset CO₂ emissions, potentially cutting 23,000 tonnes annually—the equivalent of removing 5,000 cars from the road each year.

Aligning with Broader Renewable Energy Goals

The Spanish government’s Recovery, Transformation, and Resilience Plan, backed by €15 million in funding from the European Union’s NextGenerationEU program, further supports this project. Beyond the immediate local impacts, the Castellón plant aligns with both Spain’s national energy strategy and the EU’s ambitious goals to achieve carbon neutrality by 2050.

The green hydrogen initiative stands as an example of large-scale collaborations, where industries, governments, and technology providers work together to accelerate change. This facility not only propels Spain’s decarbonization efforts but also strengthens its leadership in the European renewable energy landscape.