Moeve Starts $1.2 Billion Green Hydrogen Project

• Moeve has started construction on a 300 MW renewable hydrogen facility in Huelva, backed by more than $1.2 billion in joint investment.
• The Onuba project is expected to produce about 45,000 tonnes of renewable hydrogen annually and avoid around 250,000 tonnes of CO2 emissions each year.
• The EU-designated Project of Common Interest has secured approximately $357 million in Spanish government funding through the EU-backed NextGenerationEU recovery program.

Moeve has started construction of the first phase of its Andalusian Green Hydrogen Valley, advancing one of Europe’s largest planned renewable hydrogen developments.

The first phase, known as Onuba, is being built at Moeve’s Energy Park in Palos de la Frontera, Huelva. It will initially provide 300 MW of electrolysis capacity, with an option to add another 105 MW.

The project involves joint investment of more than $1.2 billion. That includes associated infrastructure and a dedicated photovoltaic plant for self-consumption.

Onuba is expected to produce approximately 45,000 tonnes of renewable hydrogen each year. Moeve estimates this could avoid around 250,000 tonnes of CO2 emissions annually.

Private capital joins public finance

Moeve will retain a 51% majority stake in Onuba. Clean hydrogen investment manager Hy24 and Spanish public-private finance institution COFIDES have joined as strategic partners, together holding 29%.

Enagás Renovable and renewable energy developer Alter Enersun jointly hold the remaining 20%.

The financing structure brings together corporate capital, specialist infrastructure investment and public-sector participation. It comes as Europe’s renewable hydrogen industry faces pressure to move projects from announcements into construction.

Public support is also substantial. The European Union has designated the first phase as a Project of Common Interest.

It has secured approximately $357 million from the Spanish Government’s Recovery, Transformation and Resilience Plan, financed through NextGenerationEU. The funding will support the development of 405 MW within the wider hydrogen valley.

During development, construction and commissioning, Onuba is expected to generate more than 8,000 direct, indirect and induced jobs. More than 400 local SMEs and self-employed businesses could also benefit from associated economic activity.

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Hydrogen targets hard-to-abate sectors

The renewable hydrogen produced in Huelva will support lower-carbon fuel production for road, aviation and maritime transport. It is also intended to help decarbonize industrial activities where direct electrification remains difficult.

Moeve is incorporating digital infrastructure from the design stage. Onuba will use a digital twin alongside a unified data and Internet of Things platform. The company expects these systems to support safer, more efficient and predictive operations.

The development sits within a much larger industrial strategy for southern Spain.

Moeve plans to invest approximately $2.8 billion in Andalusia in energy transition projects. Alongside Onuba, it is constructing a second-generation biofuels facility expected to produce sustainable aviation fuel and renewable HVO diesel.

Together, the projects are intended to establish Palos de la Frontera as a major European production hub for green molecules.

Andalusia targets 2 GW hydrogen buildout

The full Andalusian Green Hydrogen Valley is designed to reach 2 GW of electrolysis capacity across Moeve’s energy parks in Palos de la Frontera and San Roque, Cádiz.

Andalusia offers several advantages for large-scale hydrogen production. These include available land, strong port infrastructure and favorable conditions for low-cost renewable electricity generation.

Those characteristics could also support exports as Europe seeks domestic alternatives to imported fossil fuels and new supplies for hard-to-abate industries.

The strategic case extends beyond emissions reductions. Renewable hydrogen, biomethane and advanced biofuels are increasingly tied to Europe’s energy security and industrial competitiveness agendas.

A report by Moeve and PwC estimates that green molecules could replace up to 50% of Europe’s current fossil fuel demand by 2050. The report also estimates they could account for one-third of the continent’s energy mix and cut CO2 emissions by 22%.

For executives and investors, Onuba provides a test of whether Europe’s combination of public funding, private capital and industrial demand can support renewable hydrogen at commercial scale.

Its progress will matter beyond Spain. Europe’s hydrogen ambitions increasingly depend on projects moving from policy frameworks and investment commitments into operating industrial assets.