bp has launched the green hydrogen cluster of the Valencia region HyVal at its Castellón refinery. Led by bp, this public-private collaborative initiative is intended to be based around the phased development of up to 2GW of electrolysis capacity by 2030 for producing green hydrogen at bp’s refinery.HyVal is expected to play an instrumental role in decarbonizing the operations of bp’s Castellón refinery. Its transformation, including green hydrogen, biofuels and renewable energy, could see bp invest a total of up to €2B in Castellon by 2030.In addition to being used by bp at the refinery, the green hydrogen produced will also be used in key hard-to-abate industries in the Valencia region, such as the ceramic industry replacing the natural gas used in their processes, chemical industries for the production of green ammonia and in heavy transport.HyVal aims to support the development of Valencia region into a leader for the production of green hydrogen in Spain. Its hydrogen production is expected to be developed in phases.The first, anticipated to be operational in 2027, will involve the installation of an electrolysis plant with at least 200MW capacity at Castellón refinery. This initial stage would be expected to produce up to 31,200 metric ton of green hydrogen per year. Use of this green hydrogen to replace natural gas is estimated to be able to avoid more than 300,000 metric tons of CO₂ emissions per year when used first in the refinery and then in thermo-intensive industries and heavy transport. This green hydrogen will also be used as a feedstock for the production of SAF at the refinery.In the second phase, which could be completed in 2030, the electrolysis plant would be expanded to reach a capacity of up to 2GW of net installed power. 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.