Moeve has begun construction of the 300 MW Onuba renewable hydrogen project in Huelva, Spain, committing more than €1 billion to the first phase of the Andalusian Green Hydrogen Valley.
The facility is designed to produce around 45,000 tonnes of renewable hydrogen annually and avoid approximately 250,000 tonnes of CO2 emissions per year, but its significance extends beyond production capacity. Onuba is being developed as part of a broader strategy to build demand for hydrogen derived fuels across aviation, maritime transport, road mobility and industrial applications.
The project represents the first phase of an initiative ultimately targeting 2 GW of electrolyzer capacity across Moeve’s energy parks in Huelva and Cádiz. At the Onuba site, the initial 300 MW installation can be expanded by a further 105 MW, subject to additional grid capacity and approval. The project includes associated infrastructure and a photovoltaic facility dedicated to self consumption.
That sequencing is important because the economics of large scale renewable hydrogen depend not only on electrolyzer costs but also on renewable electricity availability, grid access, infrastructure and, critically, the ability to secure customers for the resulting molecules.
Moeve reached its final investment decision in March 2026 after securing the project framework needed to proceed. The company says the Onuba investment exceeds €1 billion and includes participation from Masdar and Enalter, which is majority controlled by Enagás Renovable. The Andalusian Green Hydrogen Valley has also been designated a European Union Project of Common Interest and received €304 million from Spain’s government under the Recovery, Transformation and Resilience Plan, financed through NextGenerationEU, for development of 405 MW of the wider valley.
The scale of the first phase nevertheless needs to be considered against the output. A 300 MW electrolyzer producing approximately 45,000 tonnes of hydrogen annually implies an average production rate of roughly 5.1 tonnes per hour. That production will require substantial quantities of renewable electricity, making the availability and cost of clean power a central factor in the project’s competitiveness.
Moeve is therefore positioning Onuba less as an isolated hydrogen plant and more as an anchor for an integrated industrial system. The company expects the hydrogen to supply renewable fuels for road transport, aviation and maritime applications, while also supporting the decarbonization of chemical and fertilizer production. The approach reflects a broader European recognition that direct electrification will not cover every energy intensive application and that hydrogen and hydrogen derived fuels will be required in sectors where batteries or direct electric technologies face technical or operational constraints.
The challenge is that producing hydrogen does not automatically create a market for it. The economics of renewable hydrogen remain highly sensitive to electricity prices, utilization rates, electrolyzer performance, infrastructure availability and the premium customers are prepared to pay for lower carbon fuels.
This is where Moeve’s broader concept of “green molecules” becomes relevant. The company uses the term to encompass renewable hydrogen, hydrogen derivatives such as ammonia and methanol, second generation biofuels and biomethane. Its strategy is consequently broader than electrolytic hydrogen production alone, with different molecules potentially serving different parts of the transport and industrial energy system.
A June 2026 report prepared by Moeve with PwC estimates that these green molecules could reduce Europe’s external energy dependence from 57% in 2024 to 28% by 2040. The report also estimates that they could replace between 30% and 50% of current European fossil fuel demand by 2050 and represent approximately one third of the European energy mix under the scenarios examined. These are scenario based projections rather than established market outcomes, and their realization would depend on infrastructure investment, regulatory support, technology costs and demand development.
The same report identifies heavy industry, chemicals and long distance transport as particularly relevant markets because they account for approximately 20% to 25% of primary energy demand and remain difficult to decarbonize through direct electrification alone. Moeve and PwC estimate that the deployment of green molecules could reduce European CO2 emissions by up to 22% by 2050.
For Onuba, the commercial implications are therefore as important as the electrolyzer itself. Aviation represents a potential outlet for hydrogen derived sustainable aviation fuels, while maritime transport can use hydrogen derivatives including ammonia and methanol. Chemical and fertilizer production can consume hydrogen directly, creating demand that does not depend on the emergence of hydrogen powered vehicles.
This diversification could help reduce the risk associated with relying on a single hydrogen application, but it also creates a more complex value chain. Each market has different technical specifications, certification requirements, infrastructure needs and cost structures. Aviation fuels, for example, require compliance with specific sustainability and fuel standards, while ammonia and methanol require different handling and distribution systems.
Moeve’s location in Huelva provides another strategic component. The company is developing the project within an existing energy park and intends to integrate renewable generation, hydrogen production and industrial demand. The wider Andalusian valley is also linked to port infrastructure, providing potential access to maritime transport and international markets.
The timing is equally significant. Moeve expects Onuba to become operational around 2029, placing its commissioning within a period when European hydrogen policy is expected to move from project development toward increasing demand obligations and industrial deployment. The project’s ability to reach its targeted output will therefore depend not only on construction but also on whether associated infrastructure and offtake markets develop on a comparable schedule.
Moeve has already contracted thyssenkrupp nucera for the 300 MW electrolyzer system, providing a defined technology pathway for the initial phase.
The broader Andalusian project ultimately targets 2 GW, meaning Onuba’s 300 MW initial phase represents only about 15% of the planned electrolyzer capacity. The first project will consequently function as a practical test of the region’s ability to connect renewable electricity, electrolysis, hydrogen distribution and industrial demand at scale.
