Andalucía has taken a major step forward in its energy transition and reindustrialisation. Energy company Moeve, formerly Cepsa, officially began construction on Thursday of Onuba, … the first phase of the Valle Andaluz del Hidrógeno Verde.
Moeve chose its energy park in Palos de la Frontera, Huelva, for the project, which is set to become Europe’s largest renewable hydrogen hub. Once fully operational, the complex will have two gigawatts of electrolysis capacity.
Green hydrogen will play a key role in the energy transition and in Europe’s plans to reindustrialise. Producers make it by using electricity to split water molecules. When that electricity comes from clean sources such as solar or wind power, the process produces hydrogen without generating greenhouse gas emissions.
One of its main advantages is its potential to power energy-intensive industries, ships and heavy-duty trucks where conventional batteries are less practical. It could therefore help replace oil and fossil gas in heavy industry.
The first phase will have 300 megawatts (MW) of electrolysis capacity, with the potential to add another 105 MW, subject to the availability of electricity and subsequent corporate approval.
The scale of the first phase is reflected in the investment. Under a financing structure that will mobilise more than one billion euros in direct investment, the project includes both the industrial infrastructure and a dedicated photovoltaic plant to supply electricity for its own consumption.
Moeve chief executive Maarten Wetselaar highlighted the importance of the project at the presentation, saying the sector was finally moving beyond pilot projects and into large-scale construction.
He said the development would strengthen Spain’s position at the forefront of sustainable energy while helping to build a more competitive and energy-independent Europe.
To finance such a large-scale project, Moeve has created a partnership in which it retains a 51 per cent majority stake. Strategic partners include specialist fund Hy24 (the world’s largest fund in the sector) and public investment company Cofides, which together hold 29 per cent of the project after Masdar withdrew.
Masdar will nevertheless remain involved as a supplier of clean energy under a long-term power purchase agreement (PPA). The remaining 20 per cent is split between Enagás Renovable, which is 80 per cent owned by Hy24, and Alter Enersun.
First meeting
The official launch also provided the setting for the first meeting between Spanish Prime Minister Pedro Sánchez and Andalusian regional president Juanma Moreno since Moreno secured a new term in office through an investiture deal with Vox.
Both leaders attended the event and highlighted the project’s potential to transform the region. They were joined by Ecological Transition Minister Sara Aagesen. European Commissioner Teresa Ribera also sent a video message highlighting the plant’s designation by the EU as a project of common interest.
Sánchez described the project as a key part of Europe’s response to the climate emergency and the geopolitical challenge of securing the continent’s energy sovereignty and reducing its dependence on external supplies.
He also announced that work would soon begin on the first sections of the hydrogen backbone network.
Moreno highlighted Andalucía’s leading position in renewable energy. He pointed out that the region has the highest installed clean electricity generation capacity in Spain and stated that its natural, geographical and infrastructure advantages make it ideally placed to become Europe’s main hydrogen-exporting region.
However, Moreno also called on the central government to urgently address the region’s shortage of electricity transmission infrastructure. He said Red Eléctrica’s limited network capacity was holding back new industrial projects that need to connect to the grid.
2029
Onuba will be Moeve’s first fully digital plant, incorporating a digital twin and a unified data and Internet of Things (IoT) platform from the outset to improve safety and operational performance.
The plant is due to start production in 2029, when it is expected to produce around 45,000 tonnes of renewable hydrogen a year.
Initially, Moeve will use the hydrogen at its Palos de la Frontera refinery, replacing all of the fossil-based hydrogen currently used there. The company will later make the supply available to other industrial users.
The switch will prevent the emission of 250,000 tonnes of CO2 a year, equivalent to removing all road traffic from the cities of Huelva, Cadiz and Jaén.
The project is also expected to create more than 8,000 direct, indirect and induced jobs across its value chain. During the construction phase, more than 400 small and medium-sized businesses and self-employed workers from the surrounding area will be involved.
When combined with the second-generation biofuels plant planned at the same site, which will produce sustainable aviation fuel (SAF) and renewable diesel, Moeve’s total investment in Andalucía will reach 2.4 billion euros.
The company says the investment will establish Huelva, together with its planned site in San Roque, Cadiz, as Europe’s largest hub for green molecules.
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