Europe’s Hydrogen Slump? Spain Just Bet €1B Against It

Spain approves a €1B hydrogen plant in Andalusia, pushing ahead while many European projects remain stalled

9 Mar 2026

Southern Europe’s green hydrogen push just gained a serious jolt of momentum. Spain’s energy company Moeve has approved more than €1 billion for the Onuba project in Andalusia, a facility set to become the region’s largest green hydrogen plant.

The 300 megawatt installation will serve as the opening phase of the wider Andalusian Green Hydrogen Valley. Backed by partners Masdar and Enagás Renovable, the project is expected to begin construction within weeks. That shift from drawing board to job site stands out in a European hydrogen market where many proposals have stalled in recent years.

Once operational, Onuba is expected to produce about 45,000 tonnes of green hydrogen each year. The fuel is aimed at sectors that struggle to electrify, including aviation, shipping, road transport, and heavy industry. At full capacity, the plant could cut roughly 250,000 tonnes of carbon dioxide emissions annually, a notable contribution to Spain’s climate targets.

Public money has helped make the numbers work. Spain has committed €304 million through the EU’s NextGenerationEU recovery funds, and the European Commission has labeled the project a Project of Common European Interest. That mix of government backing and private investment helped the partners reach the financial green light.

Moeve holds a 51 percent stake and leads the venture, while Masdar and Enagás Renovable contribute capital and expertise in clean energy and gas infrastructure. Company leaders frame the decision as a turning point in the shift toward low carbon energy, especially as hydrogen demand slowly begins to take shape.

The project could still grow. Developers are considering an additional 100 megawatts of capacity if grid upgrades and approvals fall into place, which would lift total output to 400 megawatts.

For Spain, the stakes are larger than a single plant. With abundant sunshine and a strategic location near North African energy routes, the country is positioning itself as one of Europe’s future hydrogen gateways. Onuba moving into construction suggests that vision is beginning to move from ambition to reality.