Construction begins in Palos de la Frontera

On 17 September 2026, Spanish energy firm Moeve started construction of the Onuba green hydrogen plant at its La Rábida Energy Park in Palos de la Frontera, located in Huelva province. The project represents the opening phase of the Andalusian Green Hydrogen Valley and entails an investment of €1 billion. The facility will launch with an initial electrolysis capacity of 300 megawatts, expandable by an additional 105 megawatts subject to grid access and corporate approvals. The site also integrates a dedicated on-site solar photovoltaic installation for self-consumption.

Spanish Prime Minister Pedro Sánchez attended the groundbreaking ceremony alongside European Commission Vice-President Teresa Ribera and regional leaders to mark the industrial launch.

“Produce in consequence a clean energy that can replace oil, gas, in activities where today it is still, let us recognize it, very difficult to replace.”

Ownership structure and European financing

Moeve holds a controlling 51% stake in the Onuba project. Hydrogen investment fund Hy24, backed by Ardian, and Spanish state financing entity Cofides hold a combined 29% equity share following the departure of Masdar from equity ownership, though Masdar remains involved through a long-term power purchase agreement. The remaining 20% stake is owned jointly by Enagás Renovable and Alter Enersun. Public support includes €304 million in European Union funding disbursed through the Next Generation EU facility and the Spanish PERTE program.

Moeve51%

Hy24 and Cofides29%

Enagás Renovable and Alter Enersun20%

Moeve

51 %

Hy24 and Cofides

29 %

Enagás Renovable and Alter Enersun

20 %

Data from the article text

Moeve Chief Executive Officer Maarten Wetselaar stated that the venture transitions green hydrogen from experimental pilots to industrial production, addressing European energy resilience.

“The hydrogen is the smallest molecule we have, but it has enormous power.”

Production targets and regional expansion

When operational around the turn of 2027 to 2028, the Onuba installation is planned to produce between 45,000 and 50,000 tonnes of renewable hydrogen per year by electrolysing purified municipal and industrial wastewater. This volume is calculated to eliminate 250,000 tonnes of annual carbon dioxide emissions. The project is estimated to generate 8,000 direct and indirect jobs throughout the supply chain and engage more than 400 local small and medium-sized enterprises.

A second development phase will expand the Palos de la Frontera site and establish a secondary production facility in San Roque, Cádiz. The entire valley complex is planned to reach 2,000 megawatts (2 gigawatts) of total electrolysis capacity and an annual output of 300,000 tonnes of green hydrogen by 2030, with long-term plans to supply industrial users in Germany and other European markets via pipeline networks.

Regional energy demands and grid challenges

Andalusia accounts for 10% of more than 400 hydrogen initiatives recorded nationwide by the Spanish Hydrogen Association, with Huelva and Cádiz hosting 13 and 9 projects respectively. During the launch event, Andalusian Regional President Juanma Moreno met with Spanish Energy Minister Sara Aagesen and Industry Councillor Jorge Paradela to request expansions of the national electrical transmission grid. Moreno stated that additional transmission infrastructure is required to support the heavy electricity demands of planned industrial projects across the region.