The Valencian Government grants 76 million euros to Castellón Green Hydrogen and bp Energía for the development of renewable hydrogen and sustainable fuels in the Valencian Community
The Consell has approved a decree for the direct granting of 76 million euros in aid intended to promote in the Valencian Community a unique and pioneering strategic energy investment plan at the national level that will be promoted by bp Energía España SAU and its subsidiary Castellón Green Hydrogen Phase 2 SL.
This initiative will enable the development of two high-impact driving projects in the energy transition during the period 2026-2029 and will place the Valencian Community at the forefront of renewable hydrogen production and sustainable fuels.
100% of the budget for these grants comes from the ERDF Comunitat Valenciana 2021-2027 Program, which will be managed by the Generalitat through Ivace+i. It will be distributed between 2026 and 2029, with a planned allocation of €4,360,000 in 2026, €27,803,026 in 2027, €34,067,483 in 2028, and €9,781,383 in 2029.
The aid is granted directly and on an exceptional basis, when reasons of public, social, economic and environmental interest are proven.
The strategic plan promoted by bp will have a significant impact on the Valencian productive fabric, boosting technological innovation, favoring the implementation of renewable energies in new industrial sectors and strengthening the competitiveness of the Valencian Community in key areas for the decarbonization of the economy.
Of the total amount, 66,311,892 euros are allocated to Castellón Green Hydrogen Phase 2, SL for the development of Tractor Project 1: Large Pilot Demonstrator of Renewable Hydrogen, while 9,700,000 euros have been granted to bp Energía España, SAU for the execution of Tractor Project 2: Large Pilot Demonstrator of Advanced Technologies for the Pretreatment of Sustainable Biofuels.
Renewable hydrogen project
The Tractor 1 Project envisions the production of renewable hydrogen using electrolysis technology powered by renewable energy. The initiative will integrate all the necessary elements for its production, storage, compression, and distribution, facilitating both industrial self-consumption and supply to neighboring businesses.
In addition, it will incorporate digital energy control tools to intelligently optimize renewable production, storage and industrial demand, promoting more efficient energy use.
Sustainable fuels project
For its part, the Tractor 2 Project consists of the development of a pretreatment plant for the production of alternative fuels to petroleum derivatives, specifically sustainable aviation fuel (SAF) and hydrotreated vegetable oil for road transport (HVO).
The most advanced technologies will be incorporated for the treatment of sustainable raw materials such as used oils, animal fats and oilseed waste, for their conversion into sustainable fuels, under European standards.
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The Valencian Government grants 76 million euros to Castellón Green Hydrogen and bp Energía for the development of renewable hydrogen and sustainable fuels in the Valencian Community, source
