Ground Broken on Europe’s Biggest Green Hydrogen Bet
While green hydrogen projects across Europe have faced a wave of delays, scale-backs and outright cancellations over the past year, one company in southern Spain is moving decisively in the opposite direction. Moeve, the Spanish energy group formerly known as Cepsa, has officially begun construction on the first phase of the Andalusian Green Hydrogen Valley in Palos de la Frontera, Huelva, a project it is positioning as the largest green hydrogen development anywhere in Europe.
The construction launch was marked at an event in Huelva that drew a notably high-profile guest list, including Spanish Prime Minister Pedro Sánchez, the president of the Andalusian regional government, Juanma Moreno, and Sara Aagesen, Spain’s third deputy prime minister and minister for the Ecological Transition. Representatives from the European Commission also attended, underscoring the project’s significance beyond Spain’s own borders.
Inside the Onuba Project
The first phase of the valley, known as Onuba, will begin with 300 megawatts of electrolysis capacity, with an option to expand by a further 105 megawatts depending on future grid availability. Total investment in this initial phase, including associated infrastructure and a dedicated photovoltaic plant for self-consumption, is expected to exceed €1 billion. Once operational, Onuba is projected to produce around 45,000 metric tons of renewable hydrogen annually, helping avoid an estimated 250,000 tons of CO2 emissions each year.
Moeve leads the project with a 51% majority stake, partnering with the Emirati renewable energy company Masdar and Spanish firm Enalter, which is majority owned by Enagás Renovable. The project has also been designated a Project of Common European Interest by the European Commission, a status that can unlock additional regulatory support and funding pathways across the bloc.
A Boost for Local Jobs and Industry
Beyond its energy output, the project carries significant economic weight for the Huelva region. Moeve estimates that the development, construction and commissioning phases combined will generate more than 8,000 direct jobs, along with substantial indirect and induced employment across the wider supply chain. The company also expects the project to support activity at more than 400 small and medium-sized businesses and self-employed workers in the surrounding area, a meaningful economic injection for a region seeking to position itself at the centre of Europe’s clean energy transition.
The hydrogen produced at the facility is intended to support the production of more sustainable fuels for road, air and maritime transport, while also contributing to the decarbonisation of other heavy industries that have historically been difficult to electrify directly. Industry groups have pointed to green hydrogen as one of the few realistic near-term options for cutting emissions in sectors like aviation and shipping, where battery-electric alternatives remain impractical at scale.
Part of a Much Bigger Vision
Onuba is only the opening chapter of a considerably larger plan. The full Andalusian Green Hydrogen Valley is designed to include a second production centre at Moeve’s San Roque Energy Park in Cádiz, with the two sites eventually delivering a combined electrolysis capacity of around 2 gigawatts and annual production of up to 300,000 tons of green hydrogen. Combined investment across both phases of the valley is expected to exceed €3 billion, according to earlier company statements, making it one of the largest single clean energy commitments announced in Europe in recent years.
The project’s momentum stands out against a broader European backdrop where green hydrogen ambitions have cooled considerably. Rising costs, weaker-than-expected demand and the gradual drying up of subsidy support have forced many developers across the continent to delay or shelve similar plans. Moeve’s chief executive has pointed to increased regulatory certainty in Spain, including the rejection by the Spanish parliament of a proposed windfall tax extension on energy companies, as a key factor that gave the company the confidence to move forward with the final investment decision.
Why It Matters for Europe’s Energy Independence
For Spain and the wider EU, the project carries strategic weight that goes beyond its climate credentials. Andalusia’s combination of abundant sunshine, strong wind resources and established port infrastructure makes it one of the most cost-competitive locations in Europe for renewable hydrogen production, positioning the region as a potential exporter of clean hydrogen to industrial centres elsewhere on the continent.
With construction of Onuba now underway and start-up targeted for the coming period, all eyes will be on whether Moeve can deliver the project on schedule and whether it proves resilient to the cost pressures that have derailed so many comparable ventures elsewhere in Europe. If successful, the Andalusian Green Hydrogen Valley could become a rare bright spot in Europe’s often turbulent green hydrogen story, and a genuine building block toward the continent’s longer-term energy independence.
