Valencia Greenlights €76M for bp’s Castellón Hydrogen and Sustainable Fuels Projects

The Generalitat Valenciana has greenlit a hefty €76 million aid package this month for two key projects at bp's refinery in Castellón. This funding aims to support a large-scale renewable hydrogen demonstrator through Castellón Green Hydrogen Phase 2 S.L., along with an advanced pre-treatment unit that’s all about sustainable aviation fuel (SAF) and hydrotreated vegetable oil (HVO).

Funding Split and Structure

As part of the FEDER Comunitat Valenciana 2021-2027 program, managed by Ivace+i, around €66.3 million is set aside for the hydrogen demonstrator. The remaining €9.7 million is backing the pre-treatment facility for SAF and HVO. Payments are expected to roll out in stages through to 2029, timed with construction milestones and operational ramp-up. Officials highlight that these grants are structured to take on early-stage risks, which in turn allows private capital to focus more on system integration instead of heavy upfront costs.

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