Spain begins building a green hydrogen giant: over 1,000,000,000 € in investment and 8,000 jobs
26/09/2026 11:00
Updated to
26/09/2026 11:00
Spain has just launched one of its largest industrial projects related to energy transition. MOEVE has begun construction of Onuba in Palos de la Frontera, Huelva, the first phase of the Andalusian Green Hydrogen Valley.
The project will initially have 300 MW of electrolysis capacity, expandable by another 105 MW, and will involve joint investment of over 1.000 million euros. This figure includes both associated infrastructure and a photovoltaic plant for self-consumption.
Over 8,000 jobs during project development
The company also claims that the project will support over 400 local small and medium-sized enterprises and self-employed individuals, strengthening the industrial significance of the facility in Huelva province. Construction officially began on September 17, 2026, turning the project into reality after Moeve approved the final investment decision in March.
Once operational, this first phase will have the capacity to produce around 45,000 tons of renewable hydrogen per year. Moeve also estimates it will help avoid approximately 250,000 tons of CO₂ annually, mainly by replacing hydrogen produced from fossil fuels in industrial activities that are difficult to electrify.
The hydrogen generated will not be intended solely for Moeve’s own facilities. The company plans to supply it to third parties as well, using it in sectors such as heavy industry and land, sea, and air transportation, where direct electrification is more complicated.
304 million euros in public support
Onuba also enjoys considerable public support. The first phase has received 303.75 million euros under Spain’s Valles de Hidrógeno Renovable program, funded by European NextGenerationEU funds. The project has also been recognized as a Union Europe Project of Common Interest, a category reserved for infrastructure deemed strategic for energy security and the integration of the European market.
The shareholding structure is led by Moeve, which holds a 51% stake. Hy24 and COFIDES jointly own 29%, while the remaining 20% belongs to Enagás Renovable and Alter Enersun.
The full plan aims to achieve 2 GW of electrolysis capacity and produce around 300,000 tons of green hydrogen per year, in addition to developing large-scale renewable ammonia and methanol plants near the energy parks in Huelva and San Roque, in Cádiz. Moeve estimates the investment required for the entire valley at around 4 billion euros.
Reuters reports that Onuba’s investment exceeds 1 billion euros, and the project has received more than 300 million euros in European subsidies. Additionally, Moeve is investing in biofuels as part of a broader low-carbon transformation strategy.
The choice of Palos de la Frontera is not arbitrary. Moeve already has a significant industrial and energy complex there, allowing it to integrate part of its hydrogen production directly with existing operations. With the start of construction, the project moves from being an industrial promise to becoming one of the largest energy projects currently underway in Spain. If the full planned development is completed, Andalusia could become one of Europe’s key hubs for renewable hydrogen production.