Spanish energy company Moeve has officially inaugurated construction of the Andalusian Green Hydrogen Valley, which will comprise two production hubs in Huelva and Cádiz, southern Spain. The €3 billion ($3.45 billion) project could eventually produce 300,000 metric tons of renewable hydrogen per year.
Construction began in March on the first phase of the project in Palos de la Frontera, Huelva. The initial installation will feature 300 MW of electrolyzer capacity, with the potential to expand to 405 MW, and is expected to produce between 45,000 and 50,000 metric tons of renewable hydrogen annually.
Moeve, formerly known as Cepsa, has currently secured more than €300 million in public funding for the project.
The company is developing the facility as an integrated complex that will use renewable electricity to produce hydrogen through electrolysis. The hydrogen will then be used in industrial processes and to manufacture renewable fuels and chemicals.
A second production hub is planned for San Roque, in the Campo de Gibraltar area of Cádiz. It will feature up to 1 GW of electrolyzer capacity linked to renewable ammonia production.
The current plans envisage two 500 MW electrolyzer phases, each associated with annual ammonia production capacity of 300,000 metric tons. The development will also include storage and distribution infrastructure.
Hydrogen produced at the Huelva hub will supply Moeve’s industrial facilities and third-party customers. At the Cádiz site, the hydrogen will be converted into ammonia to simplify its storage, transportation and industrial use.
The project will require new grid infrastructure, including 220 kV underground power lines serving the Huelva and Campo de Gibraltar sites. The regional government of Andalusia said the infrastructure will be coordinated with planned transmission-grid expansions.
Spanish Prime Minister Pedro Sánchez attended the project’s inauguration. He described green hydrogen as “a national project” and said increasing domestic energy production was a matter of climate action, autonomy and security.
The Spanish government views the Andalusian project as part of its strategy to deploy renewable hydrogen in sectors that are difficult to electrify directly. It has also started processing the first sections of Spain’s planned hydrogen backbone, several of which have been designated as Projects of Common Interest by the European Union.
The hydrogen network is expected to connect production and consumption centers and support the development of a wider renewable hydrogen market.
The Andalusian Green Hydrogen Valley received support through Spain’s first national funding call for renewable hydrogen production and consumption projects. The funding comes from the country’s Recovery, Transformation and Resilience Plan and the European Union’s NextGenerationEU program.
The project has also been recognized at the European level as a Project of Common Interest. It is intended to support an industrial value chain spanning electrolyzers, electrical infrastructure, storage, hydrogen processing and end-use applications.
