€1bn green hydrogen project approved in Spain

Moeve

SPAIN’S largest proposed green hydrogen project has secured a €1bn (US$1.15bn) final investment decision, allowing construction to begin on the Andalusian Green Hydrogen Valley.

The project is led by Spanish energy company Moeve – formerly Cepsa – with involvement from renewable energy companies Masdar and Enalter.

The initial €1bn investment, which includes €304m of EU subsidies allocated by the Spanish government, will fund construction of a 300 MW electrolyser capable of producing 45,000 t of hydrogen. Moeve says the facility could be expanded by a further 100 MW. 

The hydrogen is expected to be used to produce aviation, road and marine fuels, as well as serving as a feedstock for the chemicals and ammonia industries.

According to Moeve, the project is southern Europe’s largest green hydrogen development.   The company ultimately plans to install 2 GW of electrolysis capacity across two 1 GW plants in Palos de la Frontera in Huelva and San Roque in Cádiz. Moeve secured a connection to the Spanish power grid last month and expects the facility to begin operations in 2029.

The investment also covers development of a dedicated photovoltaic plant that will generate renewable energy for the electrolyser. Moeve says Andalusia is an ideal location for green hydrogen production, describing the region as “one of the places in Europe with the most competitive wind and solar photovoltaic generation capacity”. 

Moeve CEO Maarten Wetselaar said the project “will anchor a world-class hub for green molecules in Spain, supplying renewable fuels to hard-to-abate sectors while reinforcing Europe’s energy and industrial resilience”. The announcement comes amid a wave of cancelled hydrogen projects across Europe. Spain, however, continues to push ahead with industrial decarbonisation initiatives, including installing green hydrogen combustors at a steel rolling mill last November.