Speaking with Business Standard on the sidelines of India Energy Week in New Delhi, Ashu Shinghal, managing director of MGL, said that when the sector opens under the Act, they will get at least a 12 per cent return on their investment.

“We will have an opportunity to go and work in other geographical areas. It doesn’t harm us, but we are in court because the Act needs to be followed as it is written, and it cannot be one-size-fits-all. The Act has the provisions, but the regulations need to be framed in line with that. We are in favour of whatever the Act states because the government has been doing so much for the CGD sector, and we do not want to hinder that development process,” Shinghal said.

Back in 2015, the process of declaring certain CGD areas as common carriers began. However, since the process was not automatic, the regulator, in 2020, created guiding principle regulations based on which individual areas have been declared common carriers.

The Guiding Principles for Declaring City or Local Natural Gas Distribution Networks as Common Carrier or Contract Carrier Regulations, 2020, were notified in September of that year. The ‘common carrier’ principle allows all producers and consumers access to fuel transport infrastructure by appointing independent gas pipeline operators.

The new regulations aim to end the monopolies of CGDs in 54 urban areas where their exclusivity period has already expired. For Delhi and Mumbai, this period ended in 2012. However, courts have called the action ultra vires and pulled up the regulator for acting beyond its legal power and authority.

A series of legal actions initiated by PNGRB against legacy CGD players like Indraprastha Gas and MGL have been struck down in court. However, a long-pending amendment to the PNGRB Act, 2006, expanded last year, will give the sector regulator the legal authority to enforce its plan to reclassify natural gas pipelines as ‘common carriers’ and provide more clarity on handling ongoing litigation, Business Standard reported last year.

 “We do not see it as a big game changer. We are ready for it. As the matter is sub judice, we do not want to say much. But it is an opportunity for us to enter other areas, just as it is for others to operate in our area,” Shinghal said.

Regarding potential expansion areas, Shinghal did not specify any but said regions with high industrial and commercial loads would be preferred. “For example, in states like Gujarat, where industrial consumption is high, we will look at similar areas,” he said.

Currently, MGL’s highest growth comes from the industrial and commercial segment, at around 14 per cent year-on-year, Shinghal said. In the compressed natural gas segment, growth is at 10 per cent, followed by piped natural gas at 7 per cent.

https://www.business-standard.com/specials/india-energy-week/india-energy-week-2025-common-carrier-rule-opens-new-avenues-for-mgl-125021301460_1.html

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The government is also accelerating biofuel adoption, targeting 20% usage by 2026, ahead of previous projections.

At India Energy Week, which has grown significantly in scale, India will engage in bilateral talks with energy ministers and CEOs, with the 10th round of bidding for oil and gas blocks in India also expected to take place. The round will be part of the Open Acreage Licensing Policy (OALP).

On global energy trends, Puri pointed out that despite geopolitical shifts, ensuring energy availability and affordability remains a top priority. “even today, Europe is still buying 25% of its energy from Russia,” he said.

Addressing oil prices, Puri remarked, “The US President saying he wants energy prices to come down is positive for India.”

The event will feature 10 country pavilions and eight thematic zones, underscoring India’s expanding role in the global energy landscape.

IEW 2025 is poised to become the world’s second-largest energy event, spanning 28,000 square metres—65% more exhibition space than last year.

With 105 conference sessions, over 70,000 delegates, and participation from 700-plus exhibitors, the event marks a sharp increase in scale and global interest.

https://www.cnbctv18.com/economy/india-enery-week-2025-hardeep-singh-puri-lpg-natural-gas-biofuel-adoption-19556038.htm

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The Bill had proposed to broaden the definition of mineral oils, which previously included only petroleum and natural gas and introduced the concept of a petroleum lease. This lease covers various activities related to mineral oils, including exploration, prospecting, production, making them merchantable, and disposal.

The Oilfield Amendment Bill was a much-needed policy measure to improve ease of doing business in the Indian upstream petroleum sector, as per industry players. Before this, a lot of different clearances were sought across various ministries like the Ministry of Mines due to statutory ambiguity over classification of petroleum blocks, creating regulatory hurdles over clearances, which has been subduing investments into production, particularly greenfield blocks.

Under the 9th oil and gas bidding round, the country’s key players who participated included state-owned Oil and Natural Gas Corp, Oil India, and privately held Vedanta. For the first time, the bidding witnessed Reliance and its partner bp plc coming together with ONGC to bid together for exploration of a block at the Gujarat-Saurashtra basin.

Prior to this, Reliance and bp had only participated in two of the previous eight oil and gas bid rounds since 2017. The state-run upstream company now plans to bid jointly with other hydrocarbon companies in the upcoming OALP rounds.

The government, from 2016 has brought in several changes to enhance exploration of oil and gas blocks in the country and auction it by launching Hydrocarbon Exploration and Licensing Policy. This was done in its attempt to increase domestic production of oil and natural gas while reducing the country’s dependency on imports.

Under HELP, Open Acreage Licensing Programme has been launched which provides investors the freedom to carve out blocks of their choice through submission of Expression of Interest (EoI). The first bidding round under OALP was launched in January 2018 wherein 55 blocks were awarded.

The country’s exploration and production sector offers a $100 billion investment by 2030, Puri had earlier said. The government intends to increase the country’s exploration acreage to 1 million square kilometers by 2030.

Puri also said that India is likely to discuss US energy supplies to the country during the meeting between Prime Minister Narendra Modi and US President Donald Trump scheduled for later this week.

 “I will be surprised if sourcing of US energy will not figure during the discussion,” Puri said. He further added that Trump’s stance on drilling more oil and increasing supplies shall bode well for India. The country imports over 85% of its crude requirements.

https://www.financialexpress.com/policy/economy-govt-to-launch-10th-oil-gas-bidding-round-this-week-3745150/

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The grants are intended for projects in Austria, Belgium, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Italy, Lithuania, Latvia, Poland, Portugal, Spain and Sweden: notably the BarMar-H2med project between Spain and France, the backbone projects in Italy, Portugal and Spain, as well as the hydrogen corridors and routes in the Baltic region.

To note, gas transmission system operators (TSOs) of Finland, Estonia, Latvia, Lithuania, Poland and Germany announced the start of the feasibility studies on the Nordic-Baltic Hydrogen Corridor (NBHC) in December 2024.

Before the feasibility studies are set to commence, the TSOs will conduct a joint commercial principles study that will investigate the preliminary principles for a cross-border cost allocation. Reportedly, its goal is also to develop mutually suitable principles of commercial and revenue models (tariff models) to ensure financial viability for all involved TSOs.   

Commenting on the EU funding, Sara Kärki, Senior Vice President of hydrogen Development at Finland’s TSO Gasgrid, said: “The decision shows that Finland and the Baltic Sea Region is a strategically important and very competitive region for the development of the hydrogen economy and support EU-climate targets.”

It is also worth mentioning that, in December, companies from France, Germany, Portugal and Spain created an alliance for the H2Med Southwestern Hydrogen Corridor to advance the European hydrogen single market by connecting hydrogen production, storage and consumption projects. As informed, the alliance aims to accelerate the implementation of the H2Med Corridor by the early 2030s.

The EU’s support for the hydrogen development studies is part of a €1.2 billion program to boost 41 cross-border energy infrastructure projects, which have obtained the status of Projects of Common Interest (PCIs) and Projects of Mutual Interest (PMIs) in 2024 under the Trans-European Networks for Energy (TEN-E) policy framework.

According to the Commission, this is the largest call for proposals under the current CEF Energy program, both in terms of applications received and funding awarded and goes beyond the call’s initial indicative budget of €850 million. It is also said to be the first call under the revised TEN-E regulation which includes hydrogen and offshore electricity grid projects.

As underlined by the Draghi report, such cross-border energy infrastructure investments are key to securing Europe’s competitiveness. They are expected to contribute to the EU’s goals of integrating energy markets and decarbonizing the energy system.

Apart from hydrogen development studies, eight electricity grid projects, including offshore and smart electricity grids, will benefit from the program. Nearly €750 million of the funding is earmarked for them. Additionally, funding worth €250 million will support the construction of three projects and the financing of nine preparatory studies for CO2 infrastructure.

Dan Jørgensen, Commissioner for Energy and Housing, commented: “The Commission has proposed to allocate €1.25 billion in grants, the highest ever awarded under the Connecting Europe Facility for energy infrastructure projects making a key contribution to build our Energy Union. It is also the first time that hydrogen and offshore electricity grid projects are selected. Once completed, the successful projects will boost our efforts to decarbonise our economies and societies, integrating our energy markets and safeguarding our industry’s competitiveness.”

To note, the formal adoption of this award decision will, reportedly, follow in the coming weeks. The European Climate, Infrastructure and Environment Executive Agency (CINEA) will then prepare grant agreements with the beneficiaries.

The next CEF Energy call for proposals for energy infrastructure is planned for 2025.

https://www.offshore-energy.biz/eu-backs-hydrogen-infrastructure-projects-with-over-e250-million/

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In August last year, Prime Minister K.P. Sharma Oli unveiled Nepal’s first hydrogen refueling station at Kathmandu University and launched the country’s first-ever hydrogen-powered car. Across media platforms and conferences, green hydrogen is hailed as a new opportunity for Nepal to join the global energy transition.

The buzz is undeniable. Optimistically, some studies suggest that Nepal could produce green hydrogen at some of the lowest costs globally – between $1 and $2 per kilogram – thanks to Kathmandu University’s Green Hydrogen Lab and its pioneering efforts in this space. However, production typically accounts for only about 15 percent of the total cost. The rest – distribution, storage, and refueling infrastructure – poses far greater and costlier challenges.

Is Nepal ready to go all in on this?

The Hype Is Not New

Green hydrogen might seem like the newest frontier in clean energy, but its promise has been discussed for decades. In 2004, Joe Romm’s “The Hype About Hydrogen” warned against overselling the technology due to economic and technological hurdles at the time. Back then, renewable electricity costs were prohibitively high, particularly for solar and wind. Two decades later, plummeting renewable energy costs have revived global optimism for green hydrogen as a solution for energy-intensive sectors like steel, cement, aviation, and shipping, which are difficult to decarbonize through direct electrification.

This enthusiasm is reflected in global trends, with hydrogen projects planned through 2030 drawing $320 billions of planned investments. Yet fewer than 10 percent have secured committed capital, exposing a gap between ambition and action. Forecasts by Bloomberg NEF and the International Renewable Energy Agency (IRENA) suggest production costs could drop to $2 per kilogram by 2050, with some estimates reaching $1 per kilogram by 2030.

In Nepal, green hydrogen enthusiasm often fixates on one thing: generation costs. However, the real challenge lies in getting that hydrogen to where it’s needed. Its low energy density means it must be compressed, liquefied, or converted into ammonia – processes that are both expensive and require significant infrastructure investments. Given Nepal’s abundant hydropower and relatively modest industrial energy needs, using electricity directly appears to be a simpler and more cost-effective solution for meeting domestic demands.

Despite this, Nepal must carefully evaluate whether it is positioned to capitalize on the global green hydrogen shift. This includes identifying specific sectors where green hydrogen is indispensable and understanding why electrification alone may not suffice. A strategic, sector-focused approach will help ensure green hydrogen complements Nepal’s energy ambitions without straining its resources unnecessarily.

You Can’t Have Both

One of Nepal’s key priorities should be deciding where to focus its limited resources. Pursuing both EVs and hydrogen vehicles is impractical, as each requires distinct and costly infrastructure – charging stations for EVs and hydrogen refueling stations. EVs, with their growing adoption and compatibility with Nepal’s electricity grid, offer a more immediate and practical pathway for sustainable transportation.

Green hydrogen for transportation, meanwhile, would demand a complete overhaul of the vehicle fleet and the development of a nationwide refueling network. Nepal must resist the temptation to hedge its bets on both technologies and instead prioritize the solution that offers the most immediate opportunities.

EVs already have a strong head start. In just the first four months of fiscal year 2024-25, Nepal imported 3,487 EVs worth 8.37 billion Nepali rupees ($60.5 million), highlighting growing public and market interest. Kathmandu University  studies also show that operating an EV in Nepal is nearly 4.7 times cheaper than a petrol vehicle and 3.6 times cheaper than a diesel vehicle. EVs are clearly the more cost-effective and natural fit for Nepal, aligning seamlessly with its existing electricity grid.

Of course, the calculus changes if hydrogen is viewed as an export opportunity, but that adds logistic and geopolitical complexities. Relying on a single buyer like India mirrors the challenges Nepal already faces with electricity exports. Moreover, India’s scale and ambition to become a global green hydrogen hub itself mean it could produce hydrogen at much lower costs, making imports from Nepal less attractive. The risks of relying on a single market, the need for costly transmission infrastructure, and competition with larger, more advanced economies cannot be overlooked.

Globally, the infrastructure costs for green hydrogen remain daunting. A recent Harvard study estimated storage and distribution investments at $300,000 per ton, figures even developed economies find difficult to justify. For example, in California, while production costs are $1 to $2 per kilogram, retail prices at the refueling stations climb to $13 to $16 due to added storage and transport expenses. For Nepal, with its challenging mountainous terrain and lack of infrastructure, these figures should serve as a humble reminder of the complexity and cost involved, demanding a clear-eyed evaluation of where green hydrogen truly fits within the national energy strategy.

Green ammonia, however, presents a plausible case for Nepal, given its annual fertilizer demand of 700,000 to 800,000 metric tons. A demand threshold of this scale has justified projects from India, Saudi Arabia, and Namibia. But scale alone is not enough. Organizations like Global Green Growth Institute (GGGI) are assessing Nepal’s green ammonia potential.

While we wait for more studies and insights on ammonia, the key focus must remain on economic viability, market structure, off-take agreements, long term trade commitments, rather than merely the generation cost of green hydrogen. Can it compete with imports? Is the infrastructure viable? What scale makes economic sense? A balanced approach will ensure that Nepal’s strategy is both ambitious and grounded in long-term economic priorities. Nepal can borrow lessons from international initiatives, such as Asian Development Bank’s support for green ammonia projects under the South Asia Subregional Economic Cooperation Green Fuel Development Initiative and its technical assistance in India for advanced biofuels and green hydrogen.

However, for now, the decarbonization priority for Nepal should be to electrify everything, everywhere it can. Green hydrogen should complement – not compete with – hydropower expansion, ensuring that ambition is matched with economic realism. The export euphoria of green hydrogen to ammonia can wait. Nepal’s first duty is to power and sustain itself.

https://thediplomat.com/2025/02/nepal-wants-green-hydrogen-but-does-it-need-it/

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The application for this financial support was only submitted to the European Commission in autumn 2024 so the offer of funds (which was confirmed by Gasgrid on January 31) has been delivered relatively quickly.

The intention of the Nordic-Baltic Hydrogen Corridor project (which is to receive just over €29 million) is to develop a hydrogen infrastructure connecting Finnish, Estonian, Latvian, Lithuanian, Polish and German markets.

The Baltic Sea Hydrogen Collector project(which receives €15.3 million) is aimed at developing an offshore hydrogen infrastructure to connect the Finnish, Swedish and Central European markets.

The Nordic-Baltic Hydrogen Corridor (NBHC) project (which is to receive €6.8 million) aims to build hydrogen infrastructure from Finland to Germany via Estonia, Latvia, Lithuania and Poland.

As part of plan on linking the Balkans Finland to receive €51.4 million to expand hydrogen fuel sector

These three projects aim to create excellent investment conditions for clean electricity, hydrogen and hydrogen processing plants nationally and in the wider Baltic Sea Region.

It has been stressed by Gasgrid that the  projects were evaluated against strictly defined criteria: priority and urgency, maturity, quality, impact and catalytic impact.

The European Commission has considered that all three projects contribute to decarbonisation and meeting the EU’s climate and energy targets which looks to see EU member states reach some 10 per cent of its energy needs with renewable hydrogen by 2050 although work on these corridors should be completed by the 2030s.

 “This is excellent news for Finland, the Baltic Sea Region, and the European hydrogen economy as a whole. The decision shows that Finland and the Baltic Sea Region is a strategically important and very competitive region for the development of the hydrogen economy and support EU-climate targets” commented  Sara Kärki, Senior Vice President, Hydrogen Development at Gasgrid as the news was revealed.

https://euroweeklynews.com/2025/02/01/finland-to-receive-e51-4-million-to-expand-hydrogen-fuel-sector/

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As a clean energy carrier, hydrogen holds immense potential, especially for difficult to decarbonise sectors such as industrial processes and maritime shipping. Its versatility allows for hydrogen transportation in various forms such as liquid, gaseous, or chemical carriers like ammonia or methanol, through pipelines (like blending with natural gas), rail, trucks or ships.

Hydrogen stands as an energy vector for the global energy transition, providing a cleaner and more sustainable future when applied as fuel. Its appeal stems from its abundance, derived from diverse sources such as water, natural gas, biomass and others.

Furthermore, hydrogen’s unique ability to produce only water vapour when utilised in fuel cells and combustion systems makes it an energy material for reducing emissions in transportation and industrial applications. Moreover, hydrogen acts as a versatile energy storage medium, capable of storing excess renewable energy (as electrons) to molecular form, helping to stabilise power grids reliant on intermittent sources like wind and solar.

Despite its potential as a clean energy source, hydrogen poses several serious risks at every stage of its value chain, from production and storage to use and transportation. It is extremely vulnerable to unintentional fires and explosions due to its flammability, broad explosive range and low ignition energy.

Additionally, because of its low density, it must be stored at high pressure or undergo cryogenic liquefaction, which increases both the danger of pressure vessel failures and cryogenic embrittlement. Safe handling and use of metallic components are made more difficult by the possibility of hydrogen embrittlement, which necessitates careful material and operational technique selection to reduce these inherent dangers.

Establishing a robust global hydrogen supply chain necessitates significant investment in production, storage and transportation infrastructure. This includes developing specialised tankers, vessels and infrastructure at ports to handle the unique properties of hydrogen, such as its low density and cryogenic storage requirements. While the challenges are significant, the potential for decarbonising the shipping sector through hydrogen presents a compelling economic and environmental case, driving innovation and collaboration among stakeholders worldwide.

Shipping options

Several alternative hydrogen shipping methods exist, each with their own advantages and disadvantages. Compressed hydrogen gas offers simplicity but requires large tank volumes and high pressures due to hydrogen’s low density. Ammonia is a promising hydrogen carrier, boasting higher energy density per unit volume than compressed hydrogen as well as easier liquefaction and transport, albeit requiring energy-intensive conversion back to hydrogen at its destination. Liquid organic hydrogen carriers offer potentially higher energy density and improved safety compared with compressed hydrogen but demand specialised infrastructure for the handling of organic liquids and hydrogen release.

As the global economy transitions away from fossil fuels, marine LNG terminals may need to be expanded and modified for hydrogen storage, requiring some necessary adjustments. These terminals can serve as multifunctional, multi-energy carrier entry gateways to the demand and supply centres by offering maritime logistics, storage, conversion, pipeline connections, multimodal transport links and quality management.

In addition, research indicates that the supply and demand for clean hydrogen will be significantly out of balance. For example, to meet demand in Northwest Europe, the Port of Rotterdam projects that 20mt/yr of hydrogen would be delivered via the port by 2050. To link production and consumption hubs in Europe and beyond while ensuring supply security for the EU, marine ports with conversion and multimodal transportation connections will be essential.

Accelerating the offtake of the hydrogen value chain requires a concerted effort from all stakeholders, addressing critical policy matters across several dimensions. A key element is risk-sharing partnerships, where governments, private investors and technology providers collaborate to mitigate the uncertainties inherent in early-stage hydrogen technologies. This could involve joint ventures and government-backed insurance schemes to de-risk investments in production, transportation and storage infrastructure.

Policy perspectives must prioritise long-term strategic planning. Clear, consistent, and predictable regulatory frameworks are needed to attract investment and stimulate innovation. This requires harmonising the various regional, national and international incentive programmes to avoid creating trade distortions and fostering a truly global hydrogen market.

Multi-pronged approach

The pathway for hydrogen shipping necessitates a multi-pronged approach. Addressing the cost and safety concerns requires further investment in alternative carrier molecules, such asammonia or methane, alongside the deployment of more efficient vessel designs, compression solutions, strategies to recover and minimise boil-off losses, improved liquefaction technologies, proven and highly energy-efficient ammonia cracking solution and port infrastructure development.

Crucially, large-scale demonstration projects are needed to validate innovative solutions and refine operational procedures. Concurrent with technological advancements, comprehensive safety regulations and robust industry standards must be implemented and rigorously enforced.

Fostering collaboration among stakeholders in policy and standardisation matters for hydrogen trade are paramount to overcome infrastructural limitations, stimulating the development of the necessary port facilities and transportation networks required for a globally interconnected hydrogen supply chain. Only through this concerted effort can the full potential of hydrogen shipping be realised, contributing significantly to the global sustainable energy transition.

https://pemedianetwork.com/hydrogen-economist/articles/storage-transportation/2025/establishing-the-supply-chain-for-hydrogen-shipping/

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The company as recently as Tuesday told the Financial Times that “2035 remains the ambition” for the aircraft after European airlines this week scaled back their ambitions for hydrogen’s role in reaching net zero by 2050.

Airbus on Friday said the hydrogen aircraft was “expected to come later than 2035”. It said it remained “committed to [its] goal of bringing a commercially viable, hydrogen-powered aircraft to market”. 

However, the company said it recognised that “developing a hydrogen ecosystem — including infrastructure, production, distribution and regulatory frameworks — is a huge challenge requiring global collaboration and investment”.

Recent developments, it added, “indicate that progress on key enablers, particularly the availability of hydrogen produced from renewable energy sources at scale, is slower than anticipated”.

Airbus has been much more bullish than US rival Boeing about the potential for hydrogen to help decarbonise emissions from flying. Engineers at the company have been working on several different zero-emission concepts, all of which rely on hydrogen as their primary power source, since 2020. 

The union also said that Airbus had indicated it would cut the budget dedicated to its hydrogen initiatives by 25 per cent and planned to shut down plans to test hydrogen fuel cell engines on a modified A380 superjumbo. 

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Guillaume Faury, Airbus chief executive, acknowledged the challenges last month, saying “it’s not enough to have a plane if you have no infrastructure, no hydrogen in the right place, at the right time, at the right quantity and the right price”.

In an update to a net zero road map published on Tuesday, five aviation industry groups said they expected hydrogen-powered planes to be responsible for just 6 per cent of net emissions reductions by 2050, down from 20 per cent in 2021.

Instead, the industry is increasingly reliant on “sustainable aviation fuels” to cut emissions. These can be made from crops, waste cooking oil and other non fossil fuel feedstocks, and can reduce net CO₂ emissions by around 70 per cent when compared with jet fuel. But such fuels are more expensive and are currently only produced in very limited quantities.

https://www.ft.com/content/12490140-dd6d-4191-9495-a0dadb68874c

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Mantle8’s proprietary technology combines geophysics, geochemistry and seismic data to accurately detect natural hydrogen locations so that it can be extracted. The company visualises the entire hydrogen generating system to evaluate the amount and quality of hydrogen present.

Natural hydrogen is produced by nature when water reacts with iron rich rocks underground. Unlike conventional hydrogen production methods, natural hydrogen does not require energy-intensive separation processes. While low-carbon alternatives such as electrolysis from renewable energies have emerged, they remain costly. As industries worldwide seek sustainable alternatives for hard-to-decarbonize sectors like steel, cement and aviation, natural hydrogen has the potential to eliminate the green premium and become the sustainable solution for achieving net-zero goals.

Some companies experimentally drill for natural hydrogen based on surface or former drill hole indications. But Mantle8 believes it will be more effective to analyse the Earth’s subsurface to evidence the resources available beneath.

Mantle8 believes that its technology is scalable for the assessment and exploration of the entire planet. By 2030 Mantle8 aims to find 10Mt of natural hydrogen, complementing the EU goal of producing and importing the same amount of hydrogen generated from renewable energy.

Our science-first approach represents a paradigm shift in hydrogen exploration. It makes hydrogen discovery more scalable, accurate, faster and profitable,

“Our technology was founded on broad and intimate collaboration with the scientific community. The next step was finding the right partners that would enable us to deliver this technology boldly. With the support of our investors, we now have the fuel to move at the necessary pace.”

Most existing approaches to natural hydrogen extraction are based on trial and error, but Mantle8’s proprietary technology is based on rigorous science,

 “We are big believers in the hydrogen economy and exited our last investment in hydrogen at over a billion; this could be even more valuable.”

Mantle8’s expansive regional knowledge and geology-based approach to natural hydrogen exploration puts the company in a strong position to make affordable hydrogen a reality in Europe,

“With its team of experienced geologists and its bottom-up exploration approach, Mantle8 will have a significant impact on transforming hydrogen discovery.”

https://hydrogen-central.com/natural-hydrogen-exploration-startup-mantle8-raises-e3-4m-seed/

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The joint venture between bp and Iberdrola has announced the start of construction work on Spain’s largest green hydrogen project, with a capacity of 25 MW. The project could generate up to 500 jobs during the construction phase , which will involve the participation of approximately 25 Spanish companies.

The first stage of the project consists of earthmoving and preparation of a site of approximately 20,000 m2 located near the BP refinery in Castellón. Civil works will begin in the second quarter of the year .

The next milestone of the project will be the delivery and installation of the first main equipment, including the electrolyzers , which should occur in the second half of 2025. This equipment is responsible for producing green hydrogen through a chemical process (electrolysis) capable of separating the hydrogen and oxygen molecules that make up water, using electricity from renewable sources.

Carolina Mesa , bp’s vice president of hydrogen for Spain and new markets, said: “The start of construction of Spain’s largest green hydrogen plant is excellent news as it represents a concrete step forward in a project that is crucial for industrial decarbonisation. bp’s Castellón refinery is set to become a model for transforming refineries into integrated energy hubs.”

Jorge Palomar Herrero , Iberdrola’s Hydrogen Development Director, highlighted: “This project is already enabling the real development of the hydrogen value chain in our country, with key equipment manufactured in Spain and employing more than 25 local companies. In addition, the project requires 200 GWh/year of renewable energy from Iberdrola’s wind and photovoltaic plants in Spain, meeting all EU requirements to ensure that the hydrogen produced is green hydrogen.”

The announcement reinforces bp and Iberdrola’s leadership in the hydrogen sector, an energy vector that has the potential to play a significant role in the decarbonization of the industry . In addition, Iberdola and bp continue to advance their partnership to accelerate electric mobility and lead the high-power public charging segment in Spain and Portugal.

The largest green hydrogen plant in Spain

The project will receive an investment of more than 70 million euros and is being developed jointly by bp and Iberdrola España through Castellón Green Hydrogen SL , a company created with equal participation between the two companies. The plant is expected to be operational in the second half of 2026.

The 25 MW electrolyser will be powered by renewable electricity through a power purchase agreement (PPA) provided by Iberdrola from photovoltaic and wind farms.

It is estimated that the production of 2,800 tons of green hydrogen per year will replace part of the gray hydrogen currently used by the refinery in its processes. This would prevent the emission of approximately 23,000 tons of CO2 per year , which is equivalent to the emissions of 5,000 cars in the same period.

In future stages of the project, the green hydrogen produced could also be used in important industries in the Valencian Community that are difficult to decarbonize , such as the ceramics sector, to replace the natural gas used in their processes, the chemical industries and heavy transport.

This initiative, which has the participation of the Instituto Tecnológico de Energia (ITE) , has obtained funding equivalent to 15 million euros from the support programs for the Innovative Value Chain and Knowledge of Renewable Hydrogen of the Recovery, Transformation and Resilience Plan of Spain, with resources from the NextGenerationEU program of the European Union.

Trust in Spanish companies

The companies recently awarded the manufacturing and supply of the transformer to Spanish company Imefy . Based in Toledo, the La Mancha-based company will manufacture, supply and supervise the assembly and operation of the three-phase power transformer, with 37 megavolt-amperes (MVA) of power and 66/30 kilovolts (kV) of transformation ratio . Delivery is scheduled for the first quarter of 2026.

This concession reflects the confidence that bp and Iberdrola, through the company created for the Castellón Green Hydrogen project, have in Spanish companies for the development of the renewable hydrogen value chain. The initiative contributes to the structuring of the territory and the creation of industrial and innovation opportunities in a growing market , acting as a driver of development.

https://fuelcellsworks.com/2025/02/08/electrolyzer/bp-and-iberdrola-begin-construction-on-spain-s-largest-green-hydrogen-plant

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