Spain begins work on €1bn green hydrogen plant in Huelva

Spain has begun building Europe’s largest green hydrogen project, backed by €1bn in investment and expected to create over 8,000 jobs.
Europe’s largest green hydrogen project
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Construction has started on a major renewable hydrogen project in southern Spain, with Moeve beginning work on Onuba, the first stage of the Andalusian Green Hydrogen Valley in Palos de la Frontera, Huelva.

Moeve presents the development as Europe’s largest renewable hydrogen project. The initial phase represents a joint investment of more than €1 billion and is expected to generate more than 8,000 direct, indirect and induced jobs during its development, construction and commissioning. 

Onuba is the first phase of the Andalusian Green Hydrogen Valley

Onuba will be built at Moeve’s Energy Park in Palos de la Frontera, in the province of Huelva. The project includes associated infrastructure and, according to Hydrogen Europe, a dedicated photovoltaic plant for self-consumption.

Moeve leads the scheme with a 51% stake. 

  • Hy24, described as the world’s largest clean hydrogen private equity asset manager, and Spain’s public-private finance institution COFIDES have a combined 29% stake. 
  • Enagás Renovable and Alter Enersun jointly hold the remaining 20%.

Expected annual production and emissions impact

The Huelva green hydrogen plant is expected to produce approximately 45,000 tonnes of renewable hydrogen a year.

Moeve says this could avoid around 250,000 tonnes of CO₂ emissions annually, an amount it compares with the emissions generated by the internal-combustion vehicle fleets of Huelva, Cádiz and Jaén.

The hydrogen is intended to support more sustainable fuel production for road, aviation and maritime transport, while also contributing to the decarbonisation of other industries. 

More than 8,000 jobs expected in Huelva

More than 8,000 direct, indirect and induced jobs are expected across the project’s value chain during the development, construction and commissioning stages.

Moeve also expects the project to support economic activity for more than 400 local SMEs and self-employed businesses.

The construction launch was attended by representatives from the Spanish Government, the European Commission, the Regional Government of Andalusia, and the municipalities of Palos de la Frontera and Huelva, alongside business representatives involved in the project.

€304m in public funding for the wider hydrogen valley

The first stage of the Andalusian Green Hydrogen Valley has been designated by the European Union as a Project of Common Interest. It has secured €304 million from the Spanish Government under the Recovery, Transformation and Resilience Plan, financed by the EU through NextGenerationEU.

Moeve’s wider €2.4bn energy investment in Huelva

Moeve says it is investing €2.4 billion to develop a green molecules hub in Huelva. This includes the first green hydrogen plant and a second-generation biofuels plant. According to the company, these are two of the four largest industrial projects currently under construction in Spain.

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