Construction is under way on Onuba, a green hydrogen plant in Palos de la Frontera, Huelva. Backed by Moeve and more than €1 billion in public investment, the facility is designed for 300 megawatts of electrolysis capacity, with the option to add another 105 MW. It is the largest project of its kind in Europe so far. Bloomberg and Reuters reported that the official groundbreaking took place on September 17, 2026, moving the project from planning into active construction.
Onuba is expected to produce about 45,000 tonnes of renewable hydrogen each year, potentially preventing 250,000 tonnes of CO2 emissions annually. That is roughly equivalent to the combined emissions from combustion vehicles across Huelva, Cádiz and Jaén. The plant’s first phase will supply hydrogen to the local refinery, replacing fossil-based hydrogen with renewable hydrogen, a change required by 2030. Euronews has described the project as a sign that high energy prices and EU subsidies are making green hydrogen more viable.
Reuters reported that Hy24 and COFIDES have agreed to acquire a combined 29% stake in the Onuba project, while Moeve retains 51%.
Onuba is the first phase of a larger plan called Valle Andaluz del Hidrógeno Verde, which aims for a total of 2 gigawatts of electrolysis capacity across sites in Huelva and San Roque (Cádiz). The project includes industrial infrastructure and a dedicated photovoltaic plant to supply its own energy. Moeve has confirmed that Onuba is the first phase of its broader strategy to make Andalusia a European leader in green hydrogen production.
Moeve estimates that more than 8,000 jobs will be created during development, from direct positions to indirect and induced employment. More than 400 small and medium-sized businesses and self-employed workers in the region are expected to benefit. The project’s partners also include Enagás Renovable and Alter Enersun as minority stakeholders, information from industry sources cited by Reuters. Reuters-linked coverage from industry wires and national press reported that the investment decision and partnership structure were finalized in 2026, after a lengthy preparation period.
The hydrogen produced at Onuba will decarbonize the refinery and serve as feedstock for cleaner fuels in road transport, aviation and maritime sectors, as well as other industries seeking to cut emissions. The price gap remains a challenge. Moeve’s hydrogen director, Miguel Ángel Devesa, said fossil hydrogen currently costs between €1.5 and €2 per kilo, while renewable hydrogen is priced above €5. The company aims to reach price parity by 2040.
The European Union has recognized Onuba as a Project of Common Interest, unlocking €304 million in public funding from Spain’s Recovery, Change and Ability to recover Plan. Construction is scheduled to finish in less than three years, with operations expected to begin by 2029. La Moncloa reported that Prime Minister Pedro Sánchez attended the project presentation in Palos de la Frontera on September 17, 2026, and highlighted its status as a strategic national industrial initiative.
The groundbreaking ceremony brought together senior political figures, including Prime Minister Pedro Sánchez and Andalusian president Juanma Moreno. Sánchez emphasized the state’s role in financing and planning: “We have poured the intelligence of the General State Administration and the resources of the Next Generation funds to turn renewable hydrogen into a true national project when very few believed in it.” He noted that more than €3 billion has already been allocated to over 120 renewable hydrogen projects nationwide, with Onuba receiving over €300 million in public support.
Moreno spoke about the importance of the launch: “Today in Huelva, Spain’s first hydrogen valley begins, and we hope its second site in San Roque will follow soon. We are both expectant and enthusiastic about this extraordinary chance.” He also warned that the region needs sufficient electrical infrastructure to meet its industrial goals.
European Commission vice president Teresa Ribera, in a recorded message, stressed the strategic importance of Onuba’s EU recognition and its role in changing the energy system. She argued that the energy transition should be seen as a chance to strengthen and modernize industry, not as a burden.
Google/SpainAuto reports that Onuba’s launch signals a shift in Spain’s energy priorities. The project’s scale and public support, along with its place in the broader Valle Andaluz del Hidrógeno Verde, put Andalusia in the running for European leadership in green hydrogen. The region’s promises to change industry and create jobs will be tested alongside its ability to deliver competitive prices, in a sector facing growing global competition.
