Spain’s Green Hydrogen Ambitions: Moeve’s Onuba Project and Europe’s Renewable Future – News and Statistics

Nov 7, 2026

Spain is aiming to become Europe’s leader in green hydrogen, drawing on its solar and wind resources and available land for large renewable installations. According to Hydrogen Central, the country’s long reliance on imported oil and gas could give way to an energy opportunity built around a still-emerging industry.

Maarten Wetselaar, chief executive of Moeve, said Spain has historically lacked domestic oil and gas but now has an opening because of abundant solar power, strong wind resources and space for large renewable parks. The company formerly known as Cepsa has started construction at Palos de la Frontera in Huelva on Onuba, the first phase of the Andalusian Green Hydrogen Valley. The project involves more than 1 billion euros of investment and will begin with 300 megawatts of electrolysis capacity.

The ambition extends beyond a single plant. Spain intends to use its renewable resources to build a new industry, reduce its energy dependence and, over the longer term, supply energy to other European countries.

What Green Hydrogen Is

Hydrogen is not a primary energy source like the sun or wind but an energy carrier that requires energy to produce. It has been used for decades in refineries, the chemical industry and in products such as fertilisers, yet most hydrogen is still made from fossil fuels. Grey hydrogen is mainly produced using natural gas, a process that generates CO2 emissions.

Green hydrogen differs in how it is made. Electrolysis uses an electric current to split water molecules into hydrogen and oxygen. When the electricity comes from renewable sources such as solar or wind, the result is renewable or green hydrogen.

Electricity is the central cost factor. Wetselaar said power accounts for roughly 70% of the cost of green hydrogen. He indicated that producing it where renewable electricity is cheapest in Europe, namely the Iberian Peninsula, would make the fuel highly competitive, and he described Spain as a large source of renewable energy that can and will become Europe’s leading producer of green hydrogen.

Where Hydrogen Fits

Using renewable electricity directly is generally more efficient than converting it into hydrogen and then using the hydrogen as an energy source. The goal is therefore not to replace fossil fuels with hydrogen across all applications.

Its main potential lies in sectors that are hard to electrify directly. Certain processes in heavy industry, chemical production and parts of maritime and air transport need alternatives to fossil fuels that batteries cannot always provide in a practical way. Hydrogen can also be used to produce derivatives such as ammonia or synthetic fuels.

At the launch of the Huelva project, Spain’s prime minister, Pedro Sanchez, argued that the technology can help cut emissions from activities that still depend on oil and gas. He also framed the bet in economic terms, saying the transformation is not only about better protection against crises but also about seizing a huge industrial opportunity.

Major hurdles remain before the ambition can be realised, according to the source, though businesses and public authorities are channelling multi-billion-euro investments into the technology.