Construction begins on €1bn first phase of Andalusian Green Hydrogen Valley in Spain

Energy company Moeve has officially commenced construction on “Onuba”, the €1 billion first phase of the Andalusian Green Hydrogen Valley in Palos de la Frontera, Huelva, Spain.

The Onuba project will feature an initial electrolysis capacity of 300 MW—with potential expansion up to 405 MW—capable of producing approximately 45,000 tonnes of renewable hydrogen annually. The output is projected to abate 250,000 tonnes of CO2 emissions per year, supplying clean feedstock for hard-to-abate industries and sustainable transport fuel production across aviation, maritime, and heavy road transport.

Moeve holds a 51 per cent majority stake in the operating entity, alongside strategic partners Hy24 and COFIDES (holding a combined 29 per cent stake), and Enagás Renovable with Alter Enersun (holding the remaining 20 per cent). Designated as a Project of Common Interest (PCI) by the European Union, the plant has secured €304 million in public grant funding allocated via Spain’s Recovery, Transformation and Resilience Plan using NextGenerationEU funds.

Key operational metrics and infrastructure details include:

  • Regional economic impact: Creation of over 8,000 direct, indirect, and induced jobs across the value chain, engaging more than 400 local small and medium-sized enterprises (SMEs).
  • Technological features: Designed as a digitally native asset featuring a real-time digital twin and integrated IoT platform for predictive operational management.
  • Broader energy hub: Part of Moeve’s wider €2.4 billion investment footprint in Andalusia, which includes an adjacent second-generation (2G) biofuels plant scheduled to begin producing Sustainable Aviation Fuel (SAF) and renewable diesel (HVO) next year.
  • Total capacity vision: Serves as the foundation for the full 2 GW Andalusian Green Hydrogen Valley project, split across Moeve’s Energy Parks in Huelva and San Roque (Cádiz).

Pedro Sánchez, Prime Minister of Spain, stated: “The Government of Spain is supporting this transformation. We have made renewable hydrogen a true national priority, mobilizing the expertise of the Spanish public administration and the resources of Next Generation EU funds to provide investment certainty and expand supply across the country.”

Maarten Wetselaar, Chief Executive Officer of Moeve, commented: “Today, we are turning the page on green hydrogen pilot projects towards the chapter of large-scale construction. The Onuba project reinforces Spain’s position at the forefront of Europe’s sustainable energy production and represents a decisive step towards a more competitive and energy-independent Europe.”

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