- The regional Executive is driving a Hydrogen Valley with over 385 million euros in public and private investments, which in a first phase will reach different points in Burgos and Soria and later expand throughout the region
- The goal is to make Castilla y León a European reference ecosystem for green hydrogen, integrating from production to distribution, storage, and final consumption
March 31, 2025
Castilla y León | President of the Junta de Castilla y León
The President of the Junta de Castilla y León, Alfonso Fernández Mañueco, participated today in the presentation of the Hydrogen Valley project, ‘CyLH2Valley’, a strategic project that positions Burgos as a driving force in energy and industrial transformation.
During his speech, Fernández Mañueco emphasized the regional government’s commitment to the development of green hydrogen as a key source for ecological transition, with the aim of placing Castilla y León at the forefront nationally and establishing it as a benchmark in this field.
The region currently has over 60 projects linked to green hydrogen, many of them in advanced stages. Together, these initiatives will mobilize 6.6 billion euros in investments and lead to the creation of 3,200 jobs. The objective is for Castilla y León to cover 25% of the national production of green hydrogen.
Castilla y León starts from a solid position thanks to operational infrastructures like the Redexis plant in the PEMA of Garray, in Soria, which produces 300 tons of green hydrogen annually and avoids the emission of 89 tons of carbon dioxide. Initiatives in León, such as those in La Robla, Villadangos del Páramo, or Compostilla, are also noteworthy.
The project presented today has been promoted by a consortium of public and private entities, with the Junta de Castilla y León actively involved, and has received support from the European Commission through the Horizon program, following the submission of a joint proposal prepared by CARTIF. Thanks to this effort, European funds worth nearly 20 million euros have been secured, aimed at total investments exceeding 385 million euros, from both private investment and public resources, covering the entire value chain, from production to compression, distribution, storage, and final consumption. The creation of 2,000 direct and indirect long-term jobs is expected.
The project’s funding is divided between public and private resources of the companies participating as partners in the project, including Iberhidrógeno, Elyse-Kronospan, Buramove, Joanca, Ferroli, Tresca, Burgos Eficanza, Hyperbaric, Aciturri, Beroil, Desmasa, Buramove, and Youta Power.
The President of the Junta noted that the boost to green hydrogen aligns with the regional government’s commitment to a decarbonized energy model as a lever for economic growth. In this way, the Junta reinforces its dedication to clean energy, the industrial future, and technology in the region.
The development of the green hydrogen sector holds a triple strategic value. It facilitates the decarbonization of the business and industrial fabric, expands the capacity for renewable energy production, and creates new opportunities in an emerging economic sector for companies and professionals in the region.
The President also called for the involvement of the Spanish government in driving this ecosystem, requesting investments in gas infrastructure networks and strengthening electrical capacities in areas where new hydrogen plants are planned to be implemented.
Additionally, the President highlighted the successful integration of the consortium promoting the Hydrogen Valley into the Spanish Hydrogen Valleys Alliance, an initiative that will enhance institutional and business cooperation across the country and consolidate the region’s leadership role in energy transition.
Hydrogen Valley
The development of this initiative, with an initial investment of 385 million euros from both private and public sources, is based on the implementation of 9 pilot projects including 4 hydrogen production plants, two of them integrating their transformation into ammonia and methanol, the modification of burners to hydrogen in natural gas consumption facilities, a hydrogen refueling station, a hydrogen pipeline, and the acquisition of buses, trucks, and light vehicles.
After the completion of these projects, a second phase will commence with a tenth project for the Burgos-Valladolid axis replicating the development of the initial projects, thus laying the groundwork for the complete integration and development of this technology in the region.
The Consortium participating in the Hydrogen Valley Project ‘CyLH2valley’ consists of 35 partners (22 with work centers and operations in Castilla y León) distributed among consulting and engineering companies, technological centers, foundations, associations, businesses, public bodies, and associations.
The project’s funding is divided between the public and private resources of the companies participating as partners in the project.
Technological Leadership of the Region
The ‘CyLH2valley’ project focuses on Burgos and is led by the CARTIF technological center, the Castilian and Leonese Hydrogen Association ‘h2CyL’, and the University of Burgos, who have structured the project development into 3 phases: the first for design, the second for material execution, and the third for operation and exploitation.
For the full development of the project, various design, research, involvement of different companies and institutions, market analysis, and business model tasks are essential, where the Junta de Castilla y León will have a role through the Regional Energy Entity of Castilla y León (EREN).
Production and CO2 Emissions Reduction
The Valley will have a production capacity of over 16,800 tons of green hydrogen annually, generated through electrolysis and powered by renewable sources. The hydrogen produced will enable the manufacture of products like green methanol and ammonia, integrate into industrial processes, and power zero-emission mobility systems like buses and logistics vehicles.
It is also projected that the project will reduce up to 152,000 tons of CO₂ per year by replacing fossil fuels in key sectors, and position Castilla y León as a significant energy hub at a European scale, due in part to its large installed wind generation capacity of 7,200 MW, one of the highest in Europe.
The significant development of this sector in Castilla y León is crucial as it will facilitate the decarbonization of companies, especially industrial ones, attracting others seeking more environmentally sustainable opportunities. Moreover, it will enable increased production of renewable energies by favoring their storage and manageability, as well as generating new opportunities in a future economic sector for companies and professionals.