Green hydrogen plant in Burgos: projects, figures and impact

  • Burgos has multiple green hydrogen projects in Villamayor de los Montes, Lerma, Aranda de Duero and the Villalonquéjar industrial park.
  • The province is promoting a hydrogen valley that integrates production, compression, storage, distribution, and industrial and mobility uses.
  • The investments exceed hundreds of millions of euros, with thousands of jobs expected, but with debates about water, landscape and wildlife.
  • Green hydrogen is emerging as a key element in decarbonizing sectors that are difficult to electrify, thanks to the renewable potential of Castilla y León.

green hydrogen plant in Burgos

Burgos has become one of the territories where the green hydrogen It is ceasing to be a futuristic concept and becoming a very real industrial driver. In just a few years, the province has seen a series of projects for the production, storage, and use of this renewable gas in various municipalities, from the capital to Villamayor de los Montes, Lerma, and Aranda de Duero.

Behind this wave there is European public investment, leading technology companies, local councils looking to attract jobs and a clear commitment to decarbonization from transport and industry. All of this is weaving a hydrogen map in Burgos that ranges from small plants geared towards the local environment to a large hydrogen valley with an international vocation.

Green hydrogen plant in Villamayor de los Montes: initial authorizations and local concerns

One of the projects that attracts the most attention is that of the green hydrogen plant in Villamayor de los MontesThe project, promoted by the Seville-based company Atlántica Sailh 2 SL, has already been issued by the Junta de Castilla y León, a key step that declares the environmental compatibility of the initiative, although with conditions and corrective measures that still need to be applied precisely.

The facility would be located about 680 meters from the town center in Villamayor de los Montes, on a 2,7-hectare plot currently used for dryland farming. Within this fenced area, the industrial building itself would occupy around 1.500-1.551 square meters, where the electrolysis equipment, tanks, control systems and other auxiliary facilities will be integrated.

The chosen technology is the alkaline electrolysis of waterBasically, the process involves treating water to separate the hydrogen and oxygen atoms using electricity. The generated hydrogen will be piped to an underground pipeline up to 500 meters long, which will connect it to the national transport network, allowing the gas to be integrated into the overall energy system.

To operate at full capacity, the plant plans to operate 24 hours a day, 365 days a yearThe plant operates continuously, highlighting its industrial nature. Under this system, the estimated production is around 8.630,4 kilograms of hydrogen per day, or just over 3.150 tons per year, figures that position it as a significant facility within the province's overall projects.

Water consumption is one of the aspects that attracts the most attention. The project estimates a demand of 172 cubic meters of water per dayThis equates to approximately 61.200 cubic meters per year, drawn from the municipal water network of Villamayor de los Montes. To put this into context, the Ministry for Ecological Transition estimates that each person uses about 133 liters of water per day (approximately 48.545 liters annually). Therefore, the plant's water usage far exceeds the consumption of a single resident, but remains within a manageable range for a municipality if properly managed. In any case, the environmental document does not include provisions for installing rainwater harvesting and reuse systems, something some sectors consider a missed opportunity.

In terms of energy, the plant can only be considered “Green” hydrogen If the electricity powering the electrolysis comes from renewable sources, the developer indicates it will sign a power purchase agreement for clean energy from Valdorros, which would travel to Villamayor via approximately 14 kilometers of underground line. The projected annual consumption is around 255 GWh, which gives an idea of ​​the size of the renewable energy contract needed to sustain the operation.

According to the documentation, the plant will not generate significant emissions into the atmosphere nor produce uncontrolled hazardous wasteChemical byproducts, such as potassium hydroxide or sodium hydroxide, will be managed by authorized operators. As for the excess water from the process, approximately half of that consumed, it will be discharged into the municipal sewage system as ultrapure or demineralized water, and is therefore not considered a pollutant.

The chosen location adds another layer of complexity. The land, in addition to being agricultural, has natural and cultural protectionIt borders the BU-V-1411 road and is adjacent to the La Quintana archaeological site. It is also 150 meters from the Ángel River. The project states that the town of Villamayor will not be directly affected, but the environmental context requires extreme caution during construction and operation.

From an administrative standpoint, the Board has concluded that the environmental impact is compatible, provided that a series of preventive and corrective measures are implemented. Atlántica Sailh 2 SL—a company specializing in developing projects up to phase “Ready to Build” to then sell them to other operators—it still needs to obtain additional sector-specific permits before building the plant. Meanwhile, the City Council, led by Mayor Érik Hernando, has adopted a cautious approach, requesting that the company explain the project details directly to residents in informational meetings.

Villamayor de los Montes in the context of the hydrogen “bubble” in Burgos

The Villamayor plant is part of a wave of energy initiatives that are positioning Burgos as a key hub for renewable hydrogenOther biogas and hydrogen projects are already being studied or processed in the region, and the perception among some of the population is that the territory is experiencing an avalanche of large-scale industrial proposals, often designed from distant offices.

Experience in other areas shows that social acceptance It can be just as important as technical feasibility. That's why the debate in Villamayor de los Montes revolves not only around employment and investment, but also around the role of municipalities in decision-making, the protection of the rural landscape, and the shared use of resources such as water and agricultural land.

Even so, the movement around green hydrogen in the province does not respond to a single project, but to a broader strategy driven by companies, associations and administrations, which has its epicenter in a great plan: the Hydrogen Valley of Castilla y León, with a strong presence in Burgos.

The Hydrogen Valley of Castile and León: Burgos as the nucleus of a complete ecosystem

Under the name of Hydrogen Valley of Castile and León This initiative brings together one of Spain's most ambitious projects to create a comprehensive renewable hydrogen ecosystem. The project is promoted by the Caja de Burgos Foundation (whose CEO, Rafael Barbero, also chairs the Castile and León Hydrogen Association), the Burgos-based company Hiperbaric, and the Cartif technology center, among other partners.

The goal of this hydrogen valley is to transform Castile and León into the main integrated green hydrogen hub of the country, covering the entire value chain: from production by electrolysis powered by renewables, to compression, storage, distribution, and end use in mobility and industry. The project has already received an injection of 20 million euros in European funds, but it is estimated that it will mobilize around 380 million euros in total investment over a period of approximately 60 months.

Forecasts point to the creation of up to 2.000 jobs, both direct and indirect, over the next decade, and measures of training in green hydrogenThe volume of hydrogen production involved is very high: the aim is to reach approximately 16.800 tons of green hydrogen annually, which will serve as the basis for manufacturing derivatives such as methanol and renewable ammonia. These products will be geared towards industrial uses and zero-emission mobility systems, including maritime transport, where green ammonia is beginning to emerge as an alternative to traditional heavy fuels.

The project has a consortium of 35 partners from nine countries, 22 of them Spanish, including technology companies, industrial companies, universities, public administrations, and energy and logistics operators. For Rafael Barbero, it is the first major “large scale” project hydrogen in Spain financed by the European Union, with a real capacity to transform the regional productive fabric.

Most of the actions will be concentrated in Burgos citySpecifically, in the Villalonquéjar Industrial Estate. The plan is structured in three phases: an initial period of detailed design of pilot projects and infrastructure (set for around 2025); an intermediate phase, between 2026 and 2027, for the installation and commissioning of the demonstrators; and a final stage, between 2028 and 2029, in which the entire system will operate under real conditions, with a view to its scaling up and replicability in other locations.

In terms of energy, the valley will rely on the powerful renewable energy base of Castile and León, which has 7.200 MW of installed wind powerabove countries like Portugal, Norway, or Ireland. The promoters estimate that replacing fossil fuels with green hydrogen will prevent the emission of approximately 152.000 tons of CO₂ per year. Among the planned infrastructure, a Hydro pump station capable of operating at 350 and 700 bar, connected by hydrogen pipelines and intermodal transport solutions.

During the official launch, held at the Fórum Evolución in Burgos, presentations and roundtables were organized with representatives from companies such as Enagás, Lhyfe, Plug Power, and Ciuden, as well as experts from EPRI and local businesses. Topics covered ranged from the technical and logistical aspects including international success stories, with the aim of the valley benefiting from the experience of other countries and scaling up quickly.

Green hydrogen and ammonia plant in Villalonquéjar (Burgos)

Alongside the Hydrogen Valley, the city of Burgos is promoting its own green hydrogen and ammonia plant in the Villalonquéjar industrial park. The project, led by the engineering firm Sener through the company Buramove, already has a favorable Environmental Impact Statement, which allows progress towards the works, scheduled to begin before the end of the year.

The facility will be built on a plot of land in Sqm 148.554 Located on López Bravo Street, this facility has become one of the first in Spain to integrate green hydrogen production through electrolysis with renewable ammonia synthesis on-site. Part of the hydrogen will be used to supply a refueling station for trucks, vans, and buses, reinforcing Burgos' role as a clean mobility hub.

The project envisions an initial production of 18.000 tons of green ammonia per yearwith the possibility of tripling that figure in later expansion phases. All the ammonia will be destined for the neighboring chemical company Adisseo España, thus ensuring a nearby and stable industrial client, something crucial for the economic viability of the complex.

This initiative is part of the European H2 Pioneers program and has received 8,8 million euros in European funding, thanks to its scalability and market potentialThe total investment is around €150 million, placing it among the province's major investments in green hydrogen. With this project, Burgos strengthens its position in the energy transition, establishing a chemical and logistics hub focused on clean fuels.

Lerma and the Iberlerma H2 project: hydrogen, wind and photovoltaics in the Arlanza

In the Arlanza region, the main focus is on Iberlerma H2, a large-scale initiative that combines green hydrogen production with a wind farm and a photovoltaic plant integrated. The proposal, promoted by Grupo Ibereólica Renovables through related companies such as Iberhidrógeno SL, has received a favorable environmental impact statement, but still needs additional authorizations to be implemented.

The project envisions building a facility for generating hydrogen through electrolysis powered by five wind turbines and a solar field which will add 29.000 photovoltaic panels. In total, the installation will extend over more than 250 hectares of agricultural and forest land between Lerma and Quintanilla de la Mata, which has opened an intense debate about land use and the landscape impact.

From a technical point of view, Iberlerma H2 plans to work practically all year round to produce between 2.000 and 3.800 tons of hydrogen annual. The water supply, estimated at 87.600 cubic meters per year, will be obtained from underground aquifers, a point that generates concern among residents and farmers due to the possible effect on the area's water resources.

The economic component is significant: the investment figure ranges between 67 and 75 million eurosDepending on the different phases and associated elements (including wind farm, solar plant, and electrolysis systems), the construction promises more than 200 direct jobs across the various stages of the project, in addition to the participation of local companies, as explained by the president of Grupo Ibereólica Renovables, Gregorio Álvarez.

However, the scale of the project has also raised concerns. The installation of five wind turbines, each around 220 meters tall and visible from a great distance, along with the massive deployment of solar panels, has provoked a reaction from some residents. Platforms such as Stop Biogas Arlanza They have become the channel of expression for those who fear a drastic change in the landscape and an increase in pressure on wildlife.

The environmental report establishes several conditions, especially regarding the protection of sensitive species. The area has been identified as home to birds such as the red kite, the little bustard, and the Iberian imperial eagle, as well as various bat species included in protection catalogs. The experts indicate that the final design will need to be adapted to minimize the risk of collisions or habitat disruption, which may involve relocating wind turbines, modifying power line routes, or strengthening environmental monitoring.

Iberlerma H2 project in Lerma: electrolyzer and uses of the hydrogen produced

The Lerma project includes a 25 MW electrolyserwhich will be the heart of the production and highlights the importance of the electrolyzer improvementPowered exclusively by energy from a 15 MW photovoltaic plant and a 34 MW wind farm, the system is designed to achieve up to 4.000 tons of renewable hydrogen per year, if developed in all its phases.

The plant is expected to become operational during 2025, although the timeline may be adjusted depending on permits and the evolution of the hydrogen market. The gas generated, being 100% renewable, can be used as fuel. industrial raw material, vehicle fuel through hydroelectric fuel stations, a heat source for thermal processes or even blending with natural gas in existing networks, thus reducing the carbon footprint of fossil fuels.

The promoting company highlights the project's ability to position Burgos at the forefront of green hydrogen production and technology development, reinforcing the energy independence from the industrial sectors of Castile and León. Ibereólica Renovables also highlights its experience in renewables, with hundreds of MW of wind and solar power in operation and under construction in both Spain and Latin America.

At the same time, the province's recent history, with other controversial energy projects such as the green ammonia plant in Melgar de Fernamental backed by the KKR fund, leads some in the community to view these initiatives with a degree of apprehension. The concentration of corporate headquarters and the succession of megaprojects in the same province fuel the perception that Burgos has become an energy laboratory where, in the eyes of many residents, genuine citizen participation is still lacking.

Aranda de Duero: a green hydrogen plant linked to reclaimed water

Further south, Aranda de Duero Aranda has also joined the green hydrogen map with a project starting in the Allendeduero industrial park. The companies Forest Power Aranda SL and Tresca SA have requested a zoning compatibility report to build a hydrogen and hydrogen derivatives production plant on a plot of approximately 70.000 square meters, near the wastewater treatment plant.

This procedure marks the first formal step of the project at the municipal level, while the Regional Government of Castile and León will be responsible for managing the environmental impact assessment. From the City Council, the Councilor for Promotion and Development, Juan Manuel Martín, interprets this initiative as a opportunity to link the local industry with renewable energies and, in particular, with an innovative use of reclaimed water.

The idea is to utilize the municipality's treated wastewater within a closed cycleThis avoids new water intakes and integrates the project into a circular economy framework. In this way, the plant would serve as an example of integration between wastewater treatment, energy production, and environmental impact reduction.

The planned facility will be based on water electrolysis, like other complexes in the province. electricity from renewable sources —solar or wind power— to separate hydrogen from oxygen, thus obtaining a fuel with no direct carbon dioxide emissions. The hydrogen will be used for both energy purposes and the synthesis of derivatives, contributing to the decarbonization of various sectors.

Alongside the plant, Aranda de Duero has taken other steps to align itself with the regional hydrogen strategy. In May 2024, the City Council unanimously joined the Castilian-Leonese Hydrogen Association (H2CyL)With the support of the local employers' association FAE-Asemar, the city council has also acquired a hydrogen bus, financed with European funds from the Recovery Plan. This bus will be part of the Tourism Sustainability Plan, offering cleaner routes, for example, between the wineries in the area.

Forest Power's large plant in Aranda: six kilotons per year

After months of institutional silence, the true scope of the project has been revealed. Forest Power in Aranda de Duero. The company plans to build a green hydrogen and derivatives plant with an installed capacity of 45 MW, capable of generating around six kilotons of green fuel per year, which puts it on a considerable scale for a medium-sized city.

The company has applied for a €63 million grant from European funds for green hydrogen innovation. However, it failed to secure funding in either the initial call for proposals or the most recent round, so unless new funding opportunities become available, it will have to... assume the full investment with own resources or other forms of private financing.

Forest Power Aranda SL is a newly created company, but it shares its registered office in Madrid and part of its management team with another company of the same name in Cantabria, dedicated to electricity generation from renewables, cogeneration, and waste. In terms of urban planning, the plot acquired in Allendeduero—just over six hectares—was one of the last large tracts of land held by Sepes, which had tried to sell it for more than a decade through price reductions and land consolidation. Finally, the package of seven plots was finalized for around 1,7 millones de euros (excluding VAT).

Currently, the project is in its initial stages of processing. At the municipal level, the request for an urban planning compatibility report has been submitted, and at the regional level, the Regional Government will process the environmental impact assessment. The City Council emphasizes that the plant will allow valorize reclaimed water of the municipality, reinforcing its commitment to hydrogen as a central element of industrial promotion and as a strategic engine for future development.

This strategy is reinforced by concrete actions, such as the integration of the new hydrogen bus into tourist and urban routes. Although the vehicle was supposed to have arrived earlier, delays in finalizing the contract have postponed its delivery until, foreseeably, mid-2026. When operational, it will serve as a practical showcase of the Hydrogen applications in mobility.

Green hydrogen: what it is, and why it is of such interest to Burgos and Castile and León

All these projects have one thing in common: the use of green hydrogen as an energy carrier. This term refers to hydrogen produced by electrolysis of water using electricity from renewable sources, such as wind or solar power. Unlike "gray" hydrogen (obtained from natural gas) or "blue" hydrogen (also fossil-based but with partial CO₂ capture), green hydrogen does not generate direct carbon dioxide emissions during its production.

Hydrogen is the most abundant element in the universe and is present in water and organic matter. However, it does not occur in its free state in nature, so it is necessary to... produce it artificiallyElectrolysis is one of the technologies that allows for its clean production: an electrolyzer, powered by renewable electricity, separates the water molecule (H₂O) into hydrogen (H₂) and oxygen (O₂). If the electricity is renewable, the process is virtually carbon neutral.

The relevance of this system is enormous in terms of emissions reduction. The International Energy Agency estimates that replacing fossil-based hydrogen with green hydrogen could prevent up to 830 billion tons of CO₂ annually worldwide. Hence, it is considered a key element in decarbonizing sectors where direct electrification is complicated, such as the chemical industry, steel, aviation, or heavy road and sea transport.

Another advantage of hydrogen is its ability to storage and transportationIt can be compressed and stored in tanks, injected into pipelines, or even transformed into derivatives such as ammonia or methanol, which are easier to transport. In the transportation sector, it is used in fuel cell vehicles, where hydrogen reacts with oxygen from the air to generate electricity that powers an electric motor, emitting only water vapor.

Castile and León, and Burgos in particular, fit well into this map because they have a powerful renewable resource (especially wind power), a strategic logistics location, and an industrial base capable of consuming and processing that hydrogen. The combination of industrial parks, transport networks, technology companies, and European funding has made the province one of the most active hubs for green hydrogen projects nationwide.

With plants in Villamayor de los Montes, Lerma, Aranda de Duero and Villalonquéjar, along with the Hydrogen Valley of Castile and León and the planned network of hydrogen refueling stations, Burgos is shaping a an increasingly complete ecosystemProduction, derivatives such as ammonia or methanol, logistics, use in buses and trucks, and collaboration between government agencies, universities, and businesses. The challenge now is for these projects to create quality jobs, protect natural resources, and maintain a genuine dialogue with the communities where they are implemented, so that the energy transition truly benefits all of Burgos society.

green hydrogen
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