Spain has gone ahead and approved a €1bn or US$1.15bn investment for the Andalusian Green Hydrogen Valley project, which is the largest proposed green hydrogen project of the country.
The Andalusian Green Hydrogen Valley project is led by Moeve, formerly Cepsa, with partners Masdar as well as Enalter.
The initial investment in the project goes on to include €304m in EU subsidies. Construction is going to deliver a 300 MW electrolyzer producing 45,000 tonnes of hydrogen per year, with potential expansion by 100 MW.
Hydrogen is going to be used for aviation, road, and marine fuels and as feedstock for chemicals as well as ammonia.
Moeve looks forward to installing 2 GW of electrolysis capacity throughout the two 1 GW plants based in Huelva and Cádiz. The operations are expected to begin in 2029.
The investment also happens to cover the development of a dedicated photovoltaic plant, which will supply renewable energy for the electrolyzer.
Andalusia is highlighted as an ideal location by Moeve due to competitive wind and solar capacity.
Maarten Wetselaar, the Moeve CEO, 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 elsewhere in Europe, but Spain continues to push forward with decarbonization, including hydrogen use in steel production.