BP has announced it aims to jointly develop hydrogen production hubs in the UK, Spain and Portugal after agreeing a deal with the Spanish energy company Iberdrola.
The two companies said it was their intention to form a strategic collaboration aiming to help accelerate the energy transition.
In addition to developing large-scale green hydrogen production hubs in the UK, Spain and Portugal the companies intend to collaborate to significantly expand fast EV public charging infrastructure to support the adoption of electric vehicles.
Iberdrola and BP plan to form a joint venture that intends to invest up to €1bn to roll-out a network of rapid and ultra-fast EV public charge points across Spain and Portugal.
The plan includes installing and operating an initial 5,000 fast charge points by 2025, and up to a total of 11,000 by 2030, including BP and Iberdrola’s existing and future fast-charging hubs.
The companies are also looking at options to jointly serve EV customers in the UK.
Iberdrola offers comprehensive mobility services to cover the needs of electric vehicle users: residential, business and public charging, including solutions for urban and heavy transport (electrification of buses and trucks).
BP expects to use some of its network of 1,300 retail sites in Spain and Portugal as locations for charging hubs for the joint venture.
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 Northern Europe.
The companies aim to jointly develop advantaged hydrogen production hubs in Spain, Portugal and UK, with total capacity of up to 600ktpa, integrated with new renewable power.
BP and Iberdrola aim to finalise both joint venture agreements by end 2022, subject to regulatory approvals.
Bernard Looney, CEO, BP, 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 have been an early leader in the energy transition, and are very excited about what we can deliver together.”
The chairman of Iberdrola, Ignacio Galán, commented: “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.”