76 million to BP for hydrogen and biofuels in Castellón

The Consell has approved Decree 130/2026, of September 3, published in the Official Gazette of the Generalitat Valenciana (DOGV no. 10448, of September 10, 2026), which regulates and grants a direct subsidy of 76,011,892 euros to BP Energía España, SAU, and its subsidiary Castellón Green Hydrogen Phase 2, SL, for the development of a strategic energy investment plan in the Comunitat Valenciana. The aid is part of the ERDF Comunitat Valenciana 2021-2027 program and will be executed over the 2026-2029 period.

Two flagship projects in Castellón

The subsidy finances two large pilot demonstrators linked to the Castellón refinery, which the company aims to transform into an integrated energy hub:

• Flagship Project 1 (renewable hydrogen): production of hydrogen by electrolysis from renewable sources, integrating electrolysis, storage, compression, and distribution systems up to the point of consumption. It receives 66,311,892 euros, held by Castellón Green Hydrogen Phase 2, SL (NIF B56578602).
• Flagship Project 2 (SAF and HVO biofuels): advanced pretreatment technologies for sustainable raw materials—used oils, animal fats, and oleaginous waste—for conversion into sustainable aviation fuel (SAF) and road transport fuel (HVO). It receives 9,700,000 euros, held by BP Energía España, SAU (NIF A28135846).

Direct award and legal framework

The aid is granted directly and on an exceptional basis under Article 168.1.C) of the Generalitat’s Law 1/2015, of February 6, on public finance, the instrumental public sector, and subsidies, and Article 22.2.c) of the General Subsidies Law 38/2003. The decree justifies the absence of a competitive process due to the exclusive nature of the project: BP Energía España is the only company in the Comunitat with an operational refinery compatible with conversion toward biofuels and electrolysis, and it leads what will be the largest operational green hydrogen plant in Spain, scheduled for the end of 2026.

The operation complies with Regulation (EU) 651/2014 (GBER) and Regulation (EU) 2024/795, which declares renewable hydrogen and electrolyzers as strategic priority technologies for European energy security. Management is the responsibility of the Valencian Institute of Business Competitiveness (IVACE).

Schedule and financing

The amount is distributed over four annual installments: 4,360,000 euros in 2026, 27,803,026 in 2027, 34,067,483 in 2028, and 9,781,383 in 2029. The installments from 2027 to 2029 are subject to budget availability, and the decree provides for the possibility of readjusting the schedules via a decree from the Consell.

Regional impact

The plan envisions large-scale electrolysis capacity for green hydrogen and the processing of 330,000 tonnes/year of bio-based raw materials. The produced hydrogen will supply regional and national demand and position the Comunitat Valenciana as an exporting region via the H2Med Mediterranean corridor. Furthermore, the project will boost railway, road, and port infrastructures, the training of talent with Valencian universities (UJI, UPV, UA, UMH), and will benefit sectors such as ceramics, chemicals, and air, heavy, and maritime transport.

The decree, signed by the president of the Generalitat, Juan Francisco Pérez Llorca, and the regional minister of Industry, Tourism, Innovation and Commerce, Marian Cano García, will take effect the day after its publication and concludes the administrative process, and may be appealed through a motion for reconsideration or before the Contentious-Administrative Chamber of the High Court of Justice of the Comunitat Valenciana.

Source: Diari Oficial de la Generalitat Valenciana, no. 10448, of September 10, 2026, section III.B (Grants and scholarships), p. 1 (official reference: DOGV-C-2026-27803).