Megaproject in Huelva brings together billion-dollar investment, European support, and competition for new partners, in an initiative that could expand green hydrogen production in southern Europe and serve industrial sectors that still face challenges in reducing emissions.
Moeve negotiates the entry of Hy24 and Cofides into the Onuba project, the first stage of the Andalusian Green Hydrogen Valley, in Huelva, southern Spain, while preparing the implementation of one of Europe’s main bets on green hydrogen.
Planned to start with 300 MW of initial capacity, the venture may reorganize its shareholder composition and maintain the possibility of expansion, in a project classified by the company as the largest green hydrogen plant in southern Europe.
According to Europa Press, which cited sources close to the negotiation, the talks involve replacing the 29% stake currently attributed to Masdar, a renewable energy company from the United Arab Emirates.
According to the structure informed so far, Moeve will remain the majority shareholder, with 51% of the project, while Enalter will continue linked to the remaining capital and the new configuration will depend on the progress of negotiations between the groups involved.
In March 2026, Moeve announced the final investment decision to start the construction of Onuba, a stage that will require more than 1 billion euros when considering the hydrogen plant and associated infrastructures.
Onuba Project will have 300 MW in the first phase
Located in Palos de la Frontera, in the province of Huelva, Onuba will be in a strategic region for the Spanish energy industry and for the expansion of renewable fuels aimed at the European market.
The first phase foresees 300 MW of electrolysis, a technology used to produce hydrogen from water with renewable electricity, without direct carbon emissions during the industrial process of separating the molecules.
With this capacity, the plant could produce about 45 thousand tons of green hydrogen per year, a volume considered relevant to supply industrial chains and transport segments seeking to reduce the use of fossil fuels.
The estimate released by Moeve also points to an approximate reduction of 250 thousand tons of CO2 annually, associated with the replacement of fossil sources in industrial activities, heavy transport, and renewable fuels.
Part of the production will be allocated, according to the company, to renewable fuels for road transport, aviation, and the maritime sector, areas where decarbonization requires high energy density solutions.
In addition to these markets, the hydrogen produced is expected to serve the chemical and fertilizer industries, segments where emission reduction is usually more difficult due to energy intensity and the use of fossil inputs.
Public support reaches 304 million euros
Through the Recovery, Transformation, and Resilience Plan, funded with European resources from NextGenerationEU, the Spanish government allocated 304 million euros to the Andalusian Green Hydrogen Valley.
The aid was framed within the H2 Valleys program, aimed at projects capable of creating regional hubs for renewable hydrogen production and consumption, connecting energy infrastructure, industry, and transport.
In June 2025, Moeve also reported that the initial phase had received 303.75 million euros under the PERTE ERHA, the Spanish program for renewable energies, renewable hydrogen, and storage.
In subsequent communications from the company and specialized media, this amount began to be presented in a rounded form as 304 million euros, without significant change in the economic sense of the announced public support.
Another strategic point is the European recognition as a Project of Common Interest, a classification attributed to infrastructures considered relevant for energy integration, supply security, and climate transition in the bloc.
This framework reinforces the weight of Onuba within Spain’s and the European Union’s energy policy, especially in a scenario of seeking local production of clean fuels.
Masdar may leave equity participation
Masdar, which entered the project as a minority partner, may leave the equity structure if negotiations advance, but exiting the capital would not mean a complete break with the venture.
According to information published by the Spanish press, the company would remain linked to Onuba through a long-term power purchase agreement, known in the sector by the acronym PPA.
In this model, Masdar would act as a renewable electricity supplier for the complex, even without maintaining its equity stake, preserving the clean supply necessary for hydrogen to be classified as renewable.
In the case of Hy24, the possible entry into the capital would reinforce the presence of a French fund specialized in clean hydrogen infrastructure, a sector that has been attracting investments linked to the energy transition.
The manager already appears in the indirect structure of Enalter, as it acquired a majority stake in Enagás Renovable through its Clean Hydrogen Infrastructure Fund.
Meanwhile, Cofides, a Spanish public-private company focused on managing financial instruments and supporting investments, would enter as a new partner in a project that combines private capital, European financing, and industrial interest.
With this presence, Onuba would become even more connected to Spain’s public energy transition policy, without relying solely on private investors to enable its implementation on an industrial scale.
Expansion depends on electrical grid and internal approval
Although the approved phase has 300 MW, the design of Onuba foresees the possibility of adding another 100 MW, provided the project obtains additional capacity in the electrical grid.
A new approval from Moeve’s board of directors will also be necessary, an internal condition for the expansion to move beyond the stage already authorized and financed by the company.
On the institutional pages about the Andalusian Valley, Moeve mentions the construction of a plant in Palos de la Frontera with an electrolysis capacity of 405 MW, a number that includes the potential expansion.
The final investment decision was announced by the company in March 2026, after board approval, marking the project’s transition to the implementation phase.
On the occasion, the company reported that construction would begin in the following weeks, with industrial suppliers already associated with the first stage and contracts aimed at delivering the main equipment.
Among these suppliers is thyssenkrupp nucera, contracted to supply 15 standardized alkaline electrolysis units of 20 MW each, totaling 300 MW for the initial phase.
The agreement covers equipment for the first phase and confirms the industrial scale of the project in Huelva, where Moeve intends to structure a green hydrogen hub connected to regional and European demand.
Green Hydrogen Targets Hard-to-Decarbonize Sectors
The relevance of Onuba is linked to the attempt to create stable demand for renewable hydrogen in activities where direct electrification still faces technical, economic, or operational limits.
Among the priority markets mentioned by Moeve are aviation, maritime transport, heavy transport, chemical industry, and fertilizers, sectors where renewable fuels and clean inputs can reduce emissions.
In air and maritime transport, hydrogen can be used indirectly in the production of renewable fuels, an alternative considered important for segments that require high energy density.
In the chemical and fertilizer industries, it can replace fossil-based inputs, reducing emissions associated with the production of essential raw materials for different production chains.
As part of its energy transformation strategy, Moeve presents the Andalusian Valley as one of the expansion axes in low-carbon businesses, maintaining Huelva as a relevant industrial base.
The company, formerly known as Cepsa, has undergone a rebranding and seeks to expand its role in clean energy, without abandoning the existing infrastructure in strategic hubs in Spain.
The project also aligns with the European strategy to reduce external energy dependence and expand local production of clean fuels, especially in regions with strong availability of renewable energy.
Being located in an area with solar potential and consolidated industrial infrastructure, the Andalusian complex has favorable conditions for large-scale green hydrogen production.
The scale of the investment, the participation of specialized funds, and European public support indicate that Onuba surpasses the dimension of an isolated plant within the Spanish energy sector.
Industrially, the venture is part of a broader attempt to form hydrogen corridors, connecting renewable generation, productive consumption, and low-carbon transport in different economic chains.
Nevertheless, the realization of the new corporate structure depends on the progress of negotiations between Moeve, Hy24, Cofides, Masdar, and other participants involved in the project.
Until formal confirmation, the shareholding change should be treated as an ongoing negotiation, although Onuba already has approved investment and construction authorized by the company.
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