Iberdrola and BP have today inked an agreement to jointly invest billions of euros in expanding electric vehicle (EV) charging infrastructure and green hydrogen production across the UK and multiple countries in Europe.
The Spanish energy giant and British oil and gas firm said they planned to jointly invest up to €1bn towards deploying up to 11,000 fast EV charge points across Spain and Portugal, whilst also working together to develop large-scale green hydrogen production across the two countries As well as the UK that would in total amount to around 600,000 tons capacity per year.
“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,” said Iberdrola chairman Ignacio Galán. “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.”
Under the partnership, the companies aim to jointly operate an initial 5,000 fast EV charge points by 2025, and up to a total of 11,000 by 2030 across the Iberian Peninsula. These figures include Iberdrola’s existing pipeline of 2,500 charge points in operation and development across the two countries, as well as BP’s existing charging station network, they said. The firms said they also plan on exploring options to jointly serve EV customers in the UK.
On the hydrogen front, meanwhile, BP and Iberdrola plan on forming a joint venture for integrated green hydrogen production in Spain, Portugal and the UK, as well as for production of H2 derivatives such as green ammonia and methanol, which they said could be exported across Europe.
The collaboration brings together Iberdrola’s “world-class track record” in renewables development and global customer base alongside BP’s experience in gas processing, trading and its global customer portfolio, the two firms said.
All BP and Iberdrola industrial hydrogen projects currently under development, as well as new projects, will be covered by the agreement, they said.
That includes a green hydrogen project currently planned at BP’s Castellon oil plant north of Valencia in Spain, for which the firms having applied for funding from the Spanish government’s hydrogen value chain PERTE program for the project, as well as from the Instituto Tecnológico de la Energía .
BP CEO Bernard Looney said the oil and gas company had “enormous respect” for Iberdrola, as an early leader in the energy transition.
“Creating the lower carbon energy solutions that our customers want and need requires the integration of different technologies, capabilities and forms of energy,” he said. “We can deliver this faster and at scale when we work in partnership with others.”
The venture companies said they aimed to finalise joint agreements by the end of 2022, subject to regulatory approvals.