Spanish energy company Moeve has begun construction of the first phase of the Andalusian Green Hydrogen Valley, a major renewable hydrogen development in southern Spain that the company describes as Europe’s largest renewable hydrogen energy project.

The first phase, known as Onuba, is being built at Moeve’s Energy Park in Palos de la Frontera, Huelva. Construction officially began on September 17, 2026, with a groundbreaking ceremony attended by senior representatives from the Spanish Government, the European Commission, the Junta de Andalucía and local authorities.

300 MW First Phase

Onuba will initially have 300 MW of electrolysis capacity.

The facility is designed to produce approximately 45,000 tonnes of renewable hydrogen each year at this initial capacity, while avoiding around 250,000 tonnes of CO₂ emissions annually.

The project also includes the option to add a further 105 MW of electrolysis capacity. Moeve says the additional capacity is subject to obtaining further grid capacity and receiving the necessary board approval.

More Than €1 Billion Investment

The first phase represents a joint investment of more than €1 billion.

That figure includes the hydrogen facility itself, associated infrastructure and a dedicated photovoltaic plant for self-consumption.

Moeve is leading the Onuba project with a 51% stake. Hy24 and COFIDES together hold a 29% stake, while the remaining 20% is jointly owned by Enagás Renovable and Alter Enersun.

Part of a Much Larger Hydrogen Valley

Onuba is only the first phase of the wider Andalusian Green Hydrogen Valley.

The broader project is planned to reach up to 2 GW of electrolysis capacity across Moeve’s Energy Parks in Palos de la Frontera in Huelva and San Roque in Cádiz.

The wider development is expected to require around €3 billion in investment and has a long-term target of producing up to 300,000 tonnes of renewable hydrogen annually.

The full valley is intended to create an integrated renewable hydrogen and green molecules ecosystem in Andalusia.

Support From the Spanish Government

The project has received public financial support from the Spanish Government.

A total of €304 million has been awarded under Spain’s Recovery, Transformation and Resilience Plan, financed by the European Union through the NextGenerationEU programme.

The funding is being provided through the Renewable Hydrogen Valleys support programme and is linked to the development of up to 405 MW within the Andalusian Green Hydrogen Valley.

The first phase has also been designated as a Project of Common Interest by the European Union.

Hydrogen for Transport and Industry

The renewable hydrogen produced at Onuba is intended to be used in sectors that are difficult to decarbonise through direct electrification.

Moeve plans to use the hydrogen to support the production of more sustainable fuels for road, aviation and maritime transport.

It will also provide an energy source for industrial applications, including the chemical and fertiliser sectors.

Thousands of Jobs

Moeve expects the project to generate an employment impact of more than 8,000 direct, indirect and induced jobs across the value chain during its development, construction and commissioning phases.

The company also expects more than 400 local small and medium-sized businesses and self-employed workers to participate in the project's economic activity.

The employment figure is an estimated impact associated with the different stages of the project rather than a permanent number of jobs at the completed facility.

A New Industrial Hub in Huelva

Onuba is being developed alongside Moeve’s second-generation biofuels facility in Huelva.

Together, the projects form part of Moeve’s broader investment in the energy transition in Andalusia. The company has said it is investing approximately €2.4 billion in Andalusia across these energy-transition projects.

Moeve describes Palos de la Frontera as an emerging European hub for the production of renewable molecules, supported by its industrial infrastructure, port connections and access to renewable energy.

Digital Technology at Onuba

The hydrogen plant will incorporate a range of digital technologies from the design stage.

Moeve says Onuba will be its first digitally native plant, incorporating a digital twin alongside a unified data and Internet of Things platform.

The company says these systems are intended to support safer, more efficient and more predictive operations.

Spain’s Renewable Hydrogen Ambitions

The Spanish Government has identified renewable hydrogen as part of its wider strategy for reducing dependence on fossil fuels and developing new industrial value chains.

Prime Minister Pedro Sánchez attended the September 17 event in Huelva and said the Andalusian Green Hydrogen Valley represented part of Spain’s industrial and energy transformation.

The government says it has already allocated more than €3 billion in public support to more than 120 renewable hydrogen projects in Spain.

Construction Now Underway

With the start of construction at Palos de la Frontera, the Andalusian Green Hydrogen Valley has moved from development into its first major construction phase.

Onuba will provide the initial 300 MW of electrolysis capacity, with a potential expansion to 405 MW subject to the required approvals and grid capacity.

The wider valley remains a longer-term development, with the ambition of reaching up to 2 GW of electrolysis capacity across Huelva and Cádiz and establishing Andalusia as a major European centre for renewable hydrogen and other green molecules.