The works for the first phase of the Andalusian Green Hydrogen Valley began on 17 September in Palos de la Frontera. The investment exceeds €1 billion and will generate over 8,000 jobs.
The energy company Moeve has started construction of Onuba in Palos de la Frontera, the first phase of the Andalusian Green Hydrogen Valley. The works officially began on 17 September 2026, after the company approved the final investment decision in March, according to hibridosyelectricos.com.
The project will initially have 300 MW of electrolysis capacity, expandable by another 105 MW, and will mobilise a total investment of over €1 billion. This figure includes the associated infrastructure and a photovoltaic plant for self-consumption.
Moeve estimates that the development, construction, and commissioning phases will have an impact equivalent to over 8,000 direct, indirect, and induced jobs across the entire value chain. The company also claims that the project will contribute to the activity of more than 400 local SMEs and self-employed workers.
When operational, this first phase will produce around 45,000 tonnes of renewable hydrogen annually. Moeve estimates that it will help avoid around 250,000 tonnes of CO₂ per year, mainly by replacing hydrogen produced from fossil fuels in industrial activities that are difficult to electrify.
The generated hydrogen will not be solely for Moeve's own facilities. The company plans to supply it to third parties and use it in sectors such as heavy industry and land, maritime, and air transport, where direct electrification is more complicated.
Onuba has public backing of €303.75 million under the Spanish Renewable Hydrogen Valleys programme, funded by European NextGenerationEU funds. The project has also been recognised as a Project of Common Interest by the European Union.
The shareholding structure is led by Moeve, which controls 51%. Hy24 and COFIDES jointly hold 29%, while the remaining 20% belongs to Enagás Renovable and Alter Enersun.
The complete plan aims to achieve 2 GW of electrolysis capacity and produce around 300,000 tonnes of green hydrogen per year, as well as develop large renewable ammonia and methanol plants around the energy parks of Huelva and San Roque in Cádiz. Moeve estimates the investment associated with the entire valley at around €4 billion.
The choice of Palos de la Frontera is due to Moeve already having a significant industrial and energy complex there, which allows for the integration of part of the hydrogen production directly with existing activities.
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