Spain's Moeve Launches Construction of Over €1 Billion Onuba Green Hydrogen Project

en.Wedoany.com Reported - On September 17, Spanish energy company Moeve officially launched construction of the first-phase Onuba project of the Andalusian Green Hydrogen Valley in Palos de la Frontera, Huelva Province. The first phase plans to build 300 MW of electrolytic water hydrogen production facilities, with reserved capacity for an additional 105 MW expansion. The project involves combined investment of more than €1 billion, covering green hydrogen production units, supporting infrastructure, and a dedicated self-consumption photovoltaic power plant. Once completed, the project is expected to produce approximately 45,000 tonnes of renewable hydrogen per year.

Onuba is developed under Moeve's controlling stake, with Moeve holding 51%; hydrogen infrastructure investment institution Hy24 and Spanish public-private financial institution COFIDES together hold 29%, while Enagás Renovable and Alter Enersun together hold the remaining 20%. The project had previously completed its final investment decision, and this milestone marks the formal transition from investment approval to on-site construction. The additional 105 MW of electrolysis capacity still requires securing additional grid capacity and obtaining board approval.

The 300 MW first phase is designed to produce approximately 45,000 tonnes of renewable hydrogen per year. The hydrogen produced by the project will be used for road, aviation, and maritime fuel production, as well as for industrial energy use in chemicals, fertilizers, and other sectors. Moeve will also deploy a digital twin and a unified data and IoT platform in the project for plant operation and production management.

Onuba has received funding support from the Spanish government and the European Union. Through the "Hydrogen Valley" program under the EU's NextGenerationEU framework, the project has obtained approximately €304 million in public funding, corresponding to support for the 405 MW development scale of the Andalusian Green Hydrogen Valley. The construction, development, and commissioning phases of the project are expected to generate more than 8,000 direct, indirect, and induced jobs.

Maarten Wetselaar, CEO of Moeve, stated during the project's groundbreaking that current natural gas price increases have significantly narrowed the cost gap between green hydrogen and grey hydrogen produced using natural gas, and the company has recently observed rising market interest in demand for green hydrogen and other green molecules. Moeve is also simultaneously building a second-generation biofuel project in Huelva, with cumulative investment in the two projects currently amounting to approximately €2.4 billion.

Onuba is the first phase of Moeve's overall Andalusian Green Hydrogen Valley plan. The subsequent overall plan aims to achieve up to 2 GW of electrolysis capacity, while the 300 MW first phase currently entering construction, with the reserved 105 MW expansion, still depends on grid connection conditions and subsequent company approval.