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Sánchez launches the Andalusian Hydrogen Valley in Palos with €1 billion

The Green Hydrogen Valley of Moeve in Palos de la Frontera begins construction with a €1 billion investment and 300 MW initial capacity.

Beatriz Lorenzo Aguirre
Beatriz Lorenzo Aguirre
· 3 min read

The President of the Government, Pedro Sánchez, presides over the start of construction of the Green Hydrogen Valley of Moeve in Palos de la Frontera, which begins with a €1 billion investment and an initial capacity of 300 MW.

The Green Hydrogen Valley of Moeve in Palos de la Frontera is already under construction. The first phase of the project will mobilise €1 billion and will have an initial capacity of 300 megawatts (MW), expandable to 405 MW, as detailed by the President of the Government, Pedro Sánchez, during the closing of the event marking the start of construction, as reported by planderecuperacion.gob.es.

The plant will be able to produce around 50,000 tonnes of renewable hydrogen per year. Overall, the Andalusian Valley will reach up to 2,000 MW of capacity, an investment of €3 billion, and 300,000 tonnes of green hydrogen annually.

The project has received over €300 million in public support under the first call of the incentive programme for clusters or valleys of renewable hydrogen from the Ministry for Ecological Transition and the Demographic Challenge (MITECO), managed by the IDAE and financed with NextGenerationEU funds through the Recovery, Transformation and Resilience Plan (PRTR).

Attending the event were the third vice president and minister for Ecological Transition and the Demographic Challenge, Sara Aagesen; the president of the Junta de Andalucía, Juan Manuel Moreno Bonilla, and the government delegate in Andalucía, Pedro Fernández.

Sánchez framed green hydrogen as a "national project" that advances in climate issues and in autonomy and security. Regarding the Andalusian Valley, he stated that it shows "part of the solution to the climate emergency" and "the future of Huelva and Andalucía, the industrial and energy future of Spain".

"Spain wants to be among the countries leading this ecological transition, this energy transformation and, therefore, a green reindustrialisation of our country"

The president quantified the environmental and employment impact of the project: it will mean 250,000 tonnes less CO₂ per year, more than 3,700 direct jobs during execution, and the participation of over 400 small and medium-sized enterprises.

The government has already allocated over €3 billion to more than 120 renewable hydrogen projects in Spain. Sánchez defended that these aids aim to "provide certainty to investment, expand supply and facilitate the materialisation of industries in the territory".

Additionally, he announced that in the coming days the Executive will begin processing the first sections of the hydrogen trunk network, which are Projects of Common Interest (PCI). The government's response to the crisis in Iran, he added, involves protecting consumers and productive sectors and accelerating the energy transition with electrification, renewable generation, and the substitution of fossil fuels with renewable hydrogen in industry.

Beatriz Lorenzo Aguirre

Written by

Beatriz Lorenzo Aguirre

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