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CyLH2Valley – Unlocking the Castilla y León region potential to establish a clean Hydrogen Valley and Economy

CyLH2Valley aims to design and implement a large-scale hydrogen valley in Castilla y León region, encompassing mobility, industry and energy applications. The project will ensure at least two years of full-scale operation, targeting complete integration and continuous operation during the 2028–2029 period. The project will demonstrate the financial viability of the hydrogen valley, validate the integrated operation of its nine end-user pilot applications, and showcase the hydrogen potential to enable sector coupling. The project outcomes will pave the way for the upscaling of the valley and the creation of a clean hydrogen economy in the Castilla y León region by 2035, aligning the interests of the most relevant stakeholders from the hydrogen value chain.

Background

Castilla y León (CyL), one of the largest regions in Spain, plays a prominent role in the national energy landscape, driven by its abundant renewable energy resources and strong commitment to the energy transition. The energy sector is a key contributor to the regional economy, with CyL standing out as a leading renewable energy producer at both national and European levels.

This significant renewable energy potential, combined with a strong industrial sector and well-established scientific and technological capabilities, provides favourable conditions for the development of a competitive clean hydrogen economy. In this context, renewable hydrogen has become a strategic priority for the region, offering an opportunity to decarbonise hard-to-abate applications while supporting economic growth, industrial development and job creation. Hydrogen deployment can also facilitate the integration of increasing renewable generation, reduce curtailment, diversify energy supply and strengthen regional energy security. These ambitions are supported by regional and national policies. Moreover, the strategic geographical location and the potential integration with the planned hydrogen infrastructure provide opportunities to connect local hydrogen production and demand with wider national and European markets.

CyL has already developed a substantial hydrogen ecosystem. More than 180 clean hydrogen initiatives and projects are expected to be implemented by 2030, with the potential to produce over 340 kt/year of clean hydrogen by exploiting the abundant renewable resources. Building on this momentum, the development of a large-scale hydrogen valley represents a key step towards integrating currently dispersed hydrogen initiatives across production, distribution and end-use applications. By creating an interconnected regional hydrogen ecosystem, the valley can accelerate technology deployment, foster sector coupling, mobilise public and private investment, and support the emergence of a sustainable and competitive hydrogen value chain in Castilla y León.

Aim and objectives

  • Co-designing the large-scale hydrogen valley and defining financial and investment plans

  • Installing, commissioning and demonstrating the Castilla y León hydrogen valley in full operation

  • Establishing a comprehensive evaluation framework including metrics and key performance indicators

  • Applying the digital twin concept to optimize the hydrogen valley operation

Project partners

CyLH2Valley Partners

Funding is provided by European Union and Clean Hydrogen Partnership - Grant Agreement No. 101192495.

Timeframe: 2025-2030

Keytags: Hydrogen valley, renewable hydrogen, replication, digital twin

Researchers

Rafael Eduardo Guedez Mata
Rafael Eduardo Guedez Mata associate professor regm@kth.se Profile
Melisa Gounesher
Melisa Gounesher doctoral student melisag@kth.se Profile
Page responsible:Delight Ezeh
Belongs to: Energy Technology
Last changed: Aug 25, 2026
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