Spain-based energy and chemicals conglomerate Moeve has launched the $1.2-billion first phase of the Andalusian Green Hydrogen Valley project at a coastal in-country site that would be Europe’s largest renewable hydrogen energy project when it enters operation in 2029.
The estimated $3.3-billion effort aims to develop a total of 2 GW of combined electrolysis capacity to produce up to 300,000 metric tons per year of green hydrogen to be used to decarbonize chemical, steel, cement, heavy maritime transport and aviation sectors. It will also help establish the first major maritime green hydrogen corridor connecting southern and northern Europe via the Port of Rotterdam.
Moeve, with a 51% majority stake in the project, will lead first phase development to build a facility with 300 MW electrolysis capacity that will produce about 45,000 tons per year. Hy24, which terms itself the world’s largest clean-hydrogen private equity asset manager, and COFIDES, Spain’s public-private financial entity, own a combined 29%, and Spanish renewnable gas firm Enagás Renovable and solar developer Alter Enersun have a 20% share.
The developers say the project will save 250,000 tons annually of carbon dioxide emissions and is expandable to 405 MW. depending on grid availability. First-phase cost includes associated infrastructure and a dedicated solar photovoltaic plant as a clean energy source.
Siemens Energy leads the project’s core EPC consortium, partnered with Austria-based contractor STRABAG to manage civil works. Germany-based Thyssenkrupp Nucera has been contracted as primary technology supplier for large-scale alkaline water electrolyzers. Other key suppliers include Swedish heat transfer manufacturer and engineer Alfa Laval and Italy-based energy and wastewater specialist Industrie De Nora S.p.A.
“We are turning the page on green hydrogen pilot projects and moving into the chapter of large-scale construction,” said Moeve CEO Maarten Wetselaar. “We need European energy that is decarbonized and produced by us, and that is exactly what this project delivers.”
Spanish Prime Minister Pedro Sanchez said the government aims to create a market for green hydrogen and stimulate demand by introducing targets for emissions reductions and for renewable fuels use in transportation. “Our goal is to provide investment certainty, expand supply and facilitate development of industrial projects across the country,” he noted. “We have made renewable hydrogen a true national priority.”
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‘Project of Common Interest’
Sánchez said the project will receive more than $335 million in government funds through the European Union NextGenerationEU program as a “project of common interest.” European Commission Executive Vice President Teresa Ribera said the plant “reflects its strategic importance and contribution to the transformation of our energy system. Energy transition should not be viewed as a cost to industry, but as an opportunity to make it stronger, more innovative and more autonomous.”
Moeve is also constructing a separate $1.3-billion biofuels facility in a joint venture to produce 500,000 metric tons per year of sustainable aviation fuel and renewable diesel from used vegetable oils and waste. The project is supported by the European Investment Bank, which granted Moeve a $462-million loan under EU programs to reduce European dependence on imported fossil fuels.
The Moeve facilities are two of Spain’s four largest industrial projects now under construction.
Also, the Ecological Transition Ministry of Spain is expediting permits for four key natural gas pipeline segments to accelerate final investment decisions on the green hydrogen buildout, including regional production hubs in Andalusia, Aragon and the Basque region, Pipeline Technology Journal reported on Oct. 6.
The EU is keen to halt its natural gas imports from Russia, citing energy independence and security concerns, as well as uncertain and fast-changing prices and supply for crude oil and other hydrocarbon products from the Middle East.
