Moeve Breaks Ground on €1 Billion Onuba Green Hydrogen Project as Gas Prices Shift the Economics

Spain's Moeve officially broke ground on September 17, 2026 on Project Onuba, the first phase of its Andalusian Green Hydrogen Valley, at the La Rábida Energy Park in Palos de la Frontera, Huelva. The ceremony marks the construction start of what the company calls the largest green hydrogen plant in Southern Europe, backed by more than €1 billion in total global investment.

The timing is notable. CEO Maarten Wetselaar told Reuters that volatile natural gas markets, partly driven by disruptions from the ongoing Iran conflict, have narrowed the cost gap between green and grey hydrogen. "Right now, green hydrogen is competitive with grey hydrogen because the natural gas price is very high," Wetselaar said at the groundbreaking event. "Interest in green molecules in general and green hydrogen specifically has really gone up."

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Project Onuba: Key Details

Onuba is the first phase of Moeve's broader Andalusian Green Hydrogen Valley, a multi-phase plan targeting up to 2 GW of total electrolysis capacity across two sites in Andalusia. The Onuba phase will start at 300 MW, with an option to expand by a further 100 MW subject to grid availability and board approval.

At 300 MW capacity, the facility is designed to produce around 45,000 tonnes of green hydrogen per year, avoiding approximately 250,000 tonnes of CO2 annually. That's roughly equivalent to eliminating all passenger vehicle emissions across the Spanish cities of Huelva, Cádiz, and Jaén combined. The hydrogen will be channeled into aviation fuels, road and maritime transport, and industrial applications in the chemical and fertilizer sectors. A dedicated self-consumption photovoltaic plant is included in the infrastructure build. Production is expected to come online in 2029.

Investors and Technology Partners

Moeve holds a 51% majority stake in Onuba. Hy24, a France-based hydrogen infrastructure investment platform, and COFIDES, Spain's public-private development finance institution, are investors in the project. Masdar (Abu Dhabi Future Energy Company) remains linked to the project as a renewable energy supplier through a long-term power purchase agreement. Enalter, a company majority-owned by Enagás Renovable, holds the remaining 20% stake.

On the technology side, thyssenkrupp nucera signed a contract in March 2026 to supply 15 standardized 20 MW alkaline water electrolysis units for the project, covering the full 300 MW electrolyzer capacity.

EU and Spanish government backing has been substantial. Onuba received €304 million under Spain's Recovery, Transformation and Resilience Plan, financed through the EU's NextGenerationEU program via the Hydrogen Valleys scheme. The European Commission has also designated it a Project of Common European Interest.

Moeve's Broader Transformation

Moeve rebranded from Cepsa in October 2024 as part of an €8 billion Positive Motion transformation strategy focused on low-carbon businesses. Since 2022, the company has divested most of its oil production assets, including operations in Abu Dhabi and South America. Wetselaar told Reuters he expects the company's remaining upstream assets in Algeria to be sold before 2030.

Moeve is also constructing a 2G biofuels facility at La Rábida, developed in partnership with Apical, with a total investment of €1.2 billion. The plant, which will add up to 500,000 tonnes per year of sustainable aviation fuel and renewable diesel, is expected to begin production in 2027. Combined with Onuba, Moeve's total clean energy investment to date stands at approximately €2.4 billion.

Separately, Moeve and Portugal's Galp remain in non-binding discussions about combining their downstream refining, chemicals, and fuel retail operations, with both parties targeting a potential agreement in the second half of 2026.

About Moeve

Moeve (formerly Cepsa) is a Spanish multinational energy company headquartered in Madrid, with more than 11,000 employees. The company is majority-owned by Mubadala Investment Company, Abu Dhabi's sovereign wealth fund, with U.S.-based private equity firm Carlyle Group holding a minority stake. Moeve operates refineries, chemical plants, and energy parks across Spain and internationally, and is executing an €8 billion transition toward green hydrogen, biofuels, and clean mobility under its Positive Motion strategy.