1 of 3 | BP plans to overhaul a Spanish refinery to produce hydrogen, which is emerging from niche to notoriety during the so-called energy transition. File Photo by Bill Greenblatt/UPI |
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Feb. 28 (UPI) -- British energy company BP said Tuesday it would invest nearly $2 billion to develop a hydrogen hub in the Valencia region of Spain using its Castellon refinery as a foundation.
BP unveiled plans to build up its electrolysis capacity at Castellon to produce so-called green hydrogen. Hydrogen production is described using a color spectrum and the most common form in use today is grey hydrogen, which splits methane (CH4) into its elemental components of carbon and hydrogen.
Green hydrogen draws on an electric current generated from renewable energy to split water (H2O) into hydrogen and oxygen and BP said that would replace the grey hydrogen already in production at Castellon.
Dubbed Hyval -- a combination of "hydrogen" and "Valencia" -- the project not only helps with regional decarbonization efforts as green hydrogen has no carbon byproducts, but biofuel produced in coordination with hydrogen will support industries such as aviation.
The first electrolyzer could come online by 2027, the company said, and help provide energy security for the Spanish economy.
"The production of green hydrogen will be another step in strategic energy autonomy for Spain and more widely for Europe," said Carolina Mesa, BP's vice president for hydrogen, Spain and new markets.
Members of the European Parliament backed measures in early February that would support the adoption of renewable natural gas and hydrogen into the grid as part of a bloc-wide effort to rely less on fossil fuels.
By the end of 2030, lawmakers said members of the European Union need to find enough biomethane, otherwise called renewable natural gas, to replace 20% of average Russian gas imports annually.
Jerzy Buzek, a Polish member of the European Parliament and a member of its energy committee, said addressing both climate change and energy security requires a quick pivot on policy.
"The age of hydrogen is coming," he said. "To make it happen in the EU, we need a stable and well-balanced regulatory framework, financial support as well as investments in new infrastructure."
