Spanish clean energy company Iberdrola and UK-based oil and gas major BP plan to form a joint venture for large-scale green hydrogen production in Spain, Portugal, and the UK as well as production of green ammonia, and methanol.
On 28 July, Iberdrola and BP announced their intention to form a strategic collaboration to help accelerate the energy transition .
Together, the companies intend to collaborate to develop large-scale green hydrogen production hubs in Spain, Portugal, and the UK. They also plan to produce derivatives such as green ammonia, and methanol, that can be potentially exported into Nothern Europe.
This strategic collaboration will combine Iberdrola’s track record in renewables development and its global customer base, with BP’s experience in gas processing, trading, and its global customer portfolio.
The companies aim to jointly develop advantaged hydrogen production hubs in Spain, Portugal, and the UK, with a total capacity of up to 600 kilotonnes per year (ktpa), integrated with new renewable power.
The green hydrogen project at BP’s Castellón refinery will be part of the agreement. The two companies, together with the Instituto Tecnológico de la Energía , have submitted the Castellón project to the Spanish government’s hydrogen value chain PERTE call.
Moreover, Iberdrola and BP´s industrial hydrogen projects under development, as well as new projects, will be part of the agreement. They also intend to explore potential future opportunities for green hydrogen production in other geographies.
The parties aim to finalise the joint venture agreement by the end of 2022, subject to regulatory approvals.
The chairman of Iberdrola Ignacio Galán said: “With this agreement, we continue advancing in the decarbonisation and energy self-sufficiency through the electrification of two key sectors of our economy, transport and industry. The scale of this challenge requires alliances between companies such as Iberdrola and BP, which have the technology and knowledge necessary to help accelerate Europe’s industrial development and generate, at the same time, well-being and new opportunities for all through clean energy. ”
Bernard Looney, CEO of BP, added: “Creating the lower carbon energy solutions that our customers want and need requires the integration of different technologies, capabilities, and forms of energy. We can deliver this faster and at scale when we work in partnership with others.”