Iberdrola and bp today announced their intention to form a strategic collaboration aiming to help accelerate the energy transition.
This strategic collaboration will combine Iberdrola’s world-class 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 600ktpa, integrated with new renewable power.
The two companies and the Instituto Tecnológico de la Energía have submitted the Castellón project to the Spanish government’s hydrogen value chain PERTE call.
Likewise, Iberdrola and bp’s industrial hydrogen projects are under development and new projects will be part of the agreement. Based on this collaboration in Spain, Portugal and UK, Iberdrola and bp intend to explore potential future opportunities for green hydrogen production in other geographies.
The companies also plan to form a joint venture for large-scale integrated green hydrogen production in Spain, Portugal and the UK as well as production of derivatives such as green ammonia and methanol that can be potentially exported into Nothern Europe.
Bp and Iberdrola aim to finalise both joint venture agreements by the end of 2022, subject to regulatory approvals.
Ignacio Galán, the chairman of Iberdrola, 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, BP CEO, said, “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. We have enormous respect for Iberdrola who has been an early leader in the energy transition – and are very excited about what we can deliver together.”