Moeve has officially started building the first phase of what it calls Europe's largest green hydrogen project, the Andalusian Green Hydrogen Valley, in Palos de la Frontera, Huelva. The company says the initiative will position Spain as a frontrunner in the emerging hydrogen economy.
The initial phase, dubbed 'Onuba', will have an electrolysis capacity of 300 megawatts, with the possibility to add another 105 MW later. Total investment, including associated infrastructure and a dedicated photovoltaic plant for self-consumption, exceeds €1 billion.
Moeve estimates that the development, construction, and commissioning phases will create more than 8,000 direct jobs, along with indirect and induced employment across the supply chain. The project is also expected to support over 400 local small and medium-sized enterprises and self-employed workers.
“Once again, we are turning ambition into a tangible reality,” said Moeve's chief executive, Maarten Wetselaar, in a statement. “Today we are turning the page on green hydrogen pilot projects and moving into the chapter of large-scale construction.”
Speaking to Euronews, Wetselaar argued that Onuba can strengthen Spain's role in Europe's energy transition and reduce reliance on external suppliers. “We need European energy that is decarbonised and produced by us, and that is exactly what this project delivers,” he said.
The facility is designed to produce around 45,000 tonnes of renewable hydrogen annually, which would avoid roughly 250,000 tonnes of CO₂ emissions each year. The hydrogen will be used to produce cleaner fuels for road, air, and maritime transport, and to help decarbonise other industrial sectors.
Political backing and European recognition
The groundbreaking ceremony on Thursday in Palos de la Frontera drew senior officials, including Spanish Prime Minister Pedro Sánchez, Andalusian regional president Juanma Moreno, Ecological Transition Minister Sara Aagesen, and Teresa Ribera, the European Commission's executive vice-president for a Clean, Fair and Competitive Transition.
The project has been designated a Project of Common Interest by the European Union and has secured €304 million in funding from Spain's Recovery, Transformation and Resilience Plan, financed through NextGenerationEU.
Moeve highlights Spain's natural advantages for green hydrogen: abundant solar and wind resources, ample land for large renewable installations, and competitive electricity generation costs. “Spain has abundant solar energy, very good wind energy and space to build large renewable parks,” Wetselaar noted. Since renewable electricity constitutes a major share of green hydrogen production costs, these factors could make Spain one of Europe's main producers.
Onuba is led by Moeve with a 51% stake. Hy24 and Cofides jointly hold 29%, while Enagás Renovable and Alter Enersun control the remaining 20%.
The project is the first step toward a total electrolysis capacity of 2 GW at Moeve's energy parks in Palos de la Frontera and San Roque, in Cádiz province. The company also plans to connect Huelva's production with other European industrial hubs via pipelines and maritime transport. “We want to scale up this plant and connect Huelva with other industrial centres in Europe,” Wetselaar said.
This hydrogen development is part of a broader transformation of Moeve's Andalusian operations, with €2.4 billion earmarked for energy transition projects in the region, including a second-generation biofuels plant producing sustainable aviation fuel and renewable diesel.
Wetselaar sees wider implications beyond energy output. “If Spain scales up, we are talking about thousands of jobs, a significant impact on GDP and, of course, political clout,” he said. The ability to produce and export renewable energy could reshape Spain's energy relationship with the rest of Europe, he added.
