Moeve starts construction of Spanish green hydrogen project

The first phase of 2-GW Onuba project has been launched by energy firm Moeve. Onuba is the name for the first phase of the Andalusian Green Hydrogen Valley, located at Moeve’s Energy Park in Palos de la Frontera (Huelva).

The facility will have 300 MW of electrolysis capacity and represents a joint investment of more than EUR1 billion, and generate an employment impact of more than 8,000 direct, indirect, and induced jobs across the value chain.

Moeve, with a majority 51% stake, says it welcomes Hy24, the world’s largest clean hydrogen private equity asset manager, and COFIDES Spain’s public-private finance institution, as partners in the first phase, Onuba, joining Enagás Renovable and Alter Enersun. The remaining 20% is jointly held by Enagás Renovable, one of Europe’s leading developers of renewable gas projects, and Alter Enersun, a company dedicated to the development of renewable electricity generation facilities.

With an investment of EUR2.4 billion, Moeve is anchoring from Huelva the development of the largest green molecules hub in Europe’s energy sector, integrating this first green hydrogen plant and a second-generation (2G) biofuels plant. These are two of the four largest industrial projects currently under construction in Spain.

It has celebrated the start of construction of the first phase of the Andalusian Green Hydrogen Valley, Europe’s largest renewable hydrogen project, with an event in Palos de la Frontera, Huelva, that brought together senior representatives from the Spanish Government, the European Commission, the Regional Government of Andalusia, the municipalities of Palos de la Frontera and Huelva, as well as business leaders involved with and supporting the project. Their presence underscored the strategic importance of this pioneering initiative, which aims to help establish a new renewable hydrogen market and position Spain at the forefront of the sector globally.

The facility will be capable of producing approximately 45,000 tonnes of renewable hydrogen annually, avoiding around 250,000 tonnes of CO2 emissions each year, equivalent to the emissions generated by the internal combustion vehicle fleets of the cities of Huelva, Cádiz and Jaén.

The hydrogen will be used to support the more sustainable production of fuels for road, aviation and maritime transport, while also helping to decarbonise other industries.

The new plant will deploy advanced technological solutions that will help shape the emerging hydrogen market while redefining energy engineering standards as the company’s first digitally-native facility. From the design stage, the installation incorporates a digital twin and a unified data and IoT platform, laying the foundations for safer, more efficient and predictive operations.

This first phase of the Andalusian Green Hydrogen Valley has been designated by the European Union as a Project of Common Interest (PCI) and has secured EUR304 million in funding from the Spanish Government under the Recovery, Transformation and Resilience Plan, financed by the European Union through NextGenerationEU. The funding forms part of the Renewable Hydrogen Valleys support program and will support the development of 405 MW within the Andalusian Green Hydrogen Valley.

With Onuba, Moeve is taking a major step forward in delivering its Positive Motion transformation strategy. The company is deploying a total investment of EUR2.4 billion in Andalusia in energy transition projects, including this green hydrogen plant and a new second-generation (2G) biofuels facility, which will begin producing sustainable aviation fuel (SAF) and renewable HVO diesel next year. Together, these projects will make Palos de la Frontera (Huelva) home to Europe’s largest green molecules energy hub and a benchmark for industrial transformation, with two of the four largest industrial projects currently under construction in Spain.

The Andalusian Green Hydrogen Valley, Europe’s largest renewable hydrogen energy project, is designed to deliver 2 GW of electrolysis capacity across Moeve’s Energy Parks in Palos de la Frontera (Huelva) and San Roque (Cádiz). The project positions Andalusia as a strategic region for leading the production of green molecules, thanks to its availability of land, world-class port infrastructure and climatic conditions that enable renewable electricity generation at significantly lower costs than in northern Europe. These advantages are helping transform the region into an international hub for hydrogen innovation and technological expertise.

Green molecules enable the decarbonisation of hard-to-electrify sectors, including heavy industry, chemicals and long-distance transport. This strengthens Europe’s competitiveness and energy autonomy at a time when the security of energy supply has become a strategic priority. A recent report by Moeve and PwC found that green molecules could halve Europe’s external energy dependence by 2040.

According to the report, the growing role of green molecules, such as renewable hydrogen, 2G biofuels and biomethane, could replace up to 50% of Europe’s current fossil fuel demand by 2050, account for one-third of the continent’s energy mix and reduce CO2 emissions by 22%.