BP has announced plans to develop a 2GW green hydrogen cluster at an oil refinery near Valencia, Spain.

The renewable H2 produced at the €2bn ($2.12bn) project, called HyVal, will replace the highly polluting grey hydrogen used at the Castellón refinery to remove sulphur from crude oil, and also be utilised as a feedstock in the production of biofuels such as sustainable aviation fuel (SAF).

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The first 200MW of electrolysers at the facility are due to become operational in 2027, with the full 2GW complement being completed by 2030.

“Green hydrogen production from such a world-scale plant could support both regional and national demand, as well as positioning Valencia region to export green hydrogen to the rest of Europe through the Mediterranean corridor of green hydrogen H2Med [a planned hydrogen pipeline between Spain and France],” said BP in a statement.

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There is no word on where the renewable energy for the project will come from, but BP points out that the Valencia region “is already home to strategic infrastructure and facilities that can play a critical role in developing a green hydrogen economy, including ports and wind and solar power generation capacity”.

“We see Hyval as key to Castellon’s transformation and critical to supporting decarbonisation across the Valencia region,” said Andrés Guevara, president of BP Energia España.

The HyVal project “includes the potential participation from companies from various industries in the region, public institutions and research and training centers”, said BP, which plans to produce 500,000-700,000 tonnes of green hydrogen around the world by 2030.