Iberdrola secures EU-backed hydrogen funding, shares stay a key European utility play

By Julia Schmitt, Sector & Peer Group desk. Reviewed prior to publication on 2026-06-26, 10:04.

Iberdrola S.A. (ES0144580Y14) has gained Spanish government approval for the reallocation of up to EUR 211 million of EU funding to a green hydrogen venture with BP in Castellon. The Madrid-listed IBEX 35 utility remains a core component of the Stoxx Europe 600 Utilities index, giving investors broad exposure to regulated and renewable assets as tracked by major price services.

Green hydrogen funding shift with BP

According to a briefing carried by Alliance News via Morningstar, Spain's Ministry for the Ecological Transition and the Demographic Challenge has approved the reallocation of up to EUR 211 million from the EU's IPCEI Hy2USE program to Iberdrola and BP's planned hydrogen plant in Castellon. The joint initiative is also slated to receive an additional EUR 15 million from the NextGenerationEU fund and aims to start green hydrogen production before the end of 2026.

Iberdrola states that the Castellon project is set to become Spain's largest green hydrogen plant and is designed to increase production at BP's refinery while replacing natural gas in industrial processes. The company highlights potential offtake not only for the refinery but also for hard-to-abate sectors such as ceramics and chemicals, making the venture part of a broader industrial decarbonization effort in Spain's Mediterranean corridor.

Position in European utilities and recent share move

Iberdrola trades under ticker IBE on the Madrid Stock Exchange and is a heavyweight in the IBEX 35 as well as the Stoxx Europe 600 Utilities, which puts it in direct comparison with other large European utilities such as Enel and RWE. On Thursday, Iberdrola shares closed at EUR 21.46 in Madrid, up around 1.5 percent on the day, with a 12-month gain of roughly 31 percent, according to the same Alliance News report.

Price data from European quote platforms show Iberdrola around EUR 21.46 on Friday morning trade, leaving the company with a market capitalization in the low tens of billions of euros and placing it among the largest listed utilities in Europe by value. Consensus snapshots from analyst aggregators such as MarketScreener indicate that many houses maintain constructive views on the stock in the context of accelerating investment in renewables and networks, even as higher rates and regulatory debates remain part of the sector backdrop, as reflected in recent MarketScreener consensus data.

How Iberdrola makes its money

Iberdrola generates most of its revenue from electricity generation, transmission and distribution, with a growing share from onshore and offshore wind, solar and other renewable assets. The group operates extensive regulated network businesses in Spain, the United Kingdom and Latin America, complemented by its Avangrid affiliate in the United States.

Where the Iberdrola shares trade today

The Iberdrola shares (ES0144580Y14) trade on 2026-06-26, 09:30 on the Madrid Stock Exchange at 21.46 euros.

This article is for informational purposes only and does not constitute investment advice, investment recommendation or an offer or solicitation to buy or sell any financial instrument. Investors should conduct their own research and, where appropriate, consult a licensed financial adviser.