On September 17, 2026, Moeve began construction of the first phase of the Andalusian Green Hydrogen Valley in Palos de la Frontera, in the province of Huelva. Named Onuba, this phase represents an investment of over €1 billion and 300 MW of electrolysis, with the possibility of expansion to 405 MW. At the ceremony, the President of the Spanish Government, Pedro Sánchez, described green hydrogen as a "national project" and reported that the government has already allocated more than €3 billion to over 120 renewable hydrogen projects.
For Brazil, which is vying for space as an exporter of green molecules, the advancement of green hydrogen in Spain serves as a concrete benchmark, as it combines abundant renewable energy, coordinated public support, and an industrial anchor to absorb production.
What is being built in Huelva?
Presented as the largest green hydrogen project in Europe, Onuba has the following key figures:
- Initial capacity: 300 MW of electrolyzers, expandable to 405 MW.
- Estimated production: approximately 45,000 tons of renewable hydrogen per year.
- Emissions avoided: 250,000 tons of CO₂ per year, according to the company.
- Public support: €304 million from the Recovery, Transformation and Resilience Plan, funded by the European Union.
- Economic impact: more than 8,000 direct, indirect and induced jobs, with the participation of more than 400 small and medium-sized local companies.
Furthermore, the corporate structure distributes the risk. Moeve holds 51% of the project, while the Hy24 fund and the state-owned company Cofides together hold 29%, and Enagás Renovable and Alter Enersun hold the remaining 20%. The British company Wood acts as the owner's engineering firm and coordinates more than 400 contractors and subcontractors.
The ambition, however, goes far beyond the first phase. The complete plan envisions 2 GW of electrolysis distributed between Huelva and San Roque, in Cádiz, with a capacity of approximately 300,000 tons per year and a cumulative investment of 3 billion euros. The goal is to achieve industrial-scale production before 2030.
Why does demand come before the molecule
A crucial aspect lies in the destination of the hydrogen. Instead of relying on external buyers, Moeve will use the production in its own refining facility to manufacture sustainable aviation fuel (SAF) and renewable diesel (HVO), as well as to supply heavy industry and maritime and road transport.
This design addresses a key bottleneck in the sector. As the Spanish portal Merca2 summarized, "hydrogen doesn't sell itself." In other words, long-term purchase agreements often weigh more heavily on a project's viability than the availability of electrolysis technology.
The thesis of competitiveness between green and gray.
The most debated point came from Moeve's CEO, Maarten Wetselaar. According to him, green hydrogen is already competitive with gray hydrogen, partly due to the high price of natural gas, driven by the conflict in the Middle East.
The logic is straightforward. Grey hydrogen comes from the steam reforming of natural gas, so its cost follows the fuel. Green hydrogen, on the other hand, is obtained by the electrolysis of water using renewable electricity. Wetselaar states that about 70% of the cost of green hydrogen depends on the price of this electricity, which favors the Iberian Peninsula, where renewable energy is cheaper than in the rest of Europe.
The results of the second auction by the European Bank of Hydrogen, cited by the newspaper El Español, reinforce this argument:
- Spain: average cost of 5.5 euros per kilogram of hydrogen.
- European average: 7.1 euros per kilo.
- Rest of Europe, excluding Spain: 9.4 euros per kilo.
Even so, a global comparison calls for caution. China already produces at around 3 euros per kilogram, and India registered a bid of 2.68 euros per kilogram in the Numaligarh refinery auction. Furthermore, the advantage over grey fuel largely depends on expensive gas. If the cost of renewable electricity rises or European mandates for sustainable fuels weaken, the difference could once again tip against green fuel. Therefore, Wetselaar believes that carbon pricing and economies of scale will cause the cost curves to structurally converge.
What can the Spanish experience teach Brazilian exporters?
Brazil is also accelerating. On September 23, 2026, the government published Decree No. 13,096/2026, which regulates the National Hydrogen Policy, the certification system, the Rehidro program, and the Low Carbon Hydrogen Development Program (PHBC). The program provides for R$18.3 billion in tax credits, distributed through a competitive procedure conducted by the Ministry of Finance, in which the winner is the one who requests the least credit per unit produced. Initially, the eligibility limit is 7 kg of CO₂ equivalent per kilogram of hydrogen. The first auction is scheduled between the end of 2026 and January 2027.
Given this scenario, the Andalusian case offers four objective lessons:
- Anchoring demand before scaling up. Projects with guaranteed consumption, such as refining, fertilizers, or steelmaking, reduce market risk and attract capital.
- Cheap electricity as a decisive advantage. If 70% of the cost comes from energy, Brazil's renewable energy matrix is an asset that needs to be converted into a competitive price per kilogram.
- Coordination between the State and infrastructure. The president of the Junta de Andalucía, Juanma Moreno, warned that southern Spain needs sufficient electrical infrastructure to accommodate so many projects, a challenge that also applies to the Brazilian Northeast.
- Industrial implementation capability. Integrating electrolyzers on a scale of hundreds of megawatts requires engineering planning from the design stage.
From pilot phase to industrial scale.
“Today we leave behind the era of pilot projects to move forward to construction,” declared Wetselaar at the ceremony. For Brazil, the challenge now is to transform announcements into economically viable projects, with contracted demand, competitive energy, and consistent technological choices in electrolysis. Whoever structures these pillars well will have a privileged position when the global market gains scale.
References
- MOEVE. Moeve starts construction of the first phase of the biggest green hydrogen project in Europe. 17 Sep. 2026.
- LA MONCLOA. Pedro Sánchez claims that green hydrogen is a “country project”. 17 Sep. 2026.
- EURONEWS. Green hydrogen in Huelva: Moeve promises that Spain will “lead” energy in Europe. 18 Sep. 2026.
- EL PLURAL. The energetic paradox of war: the expensive gas of oxygen and Andalusian green hydrogen. Sept. 2026.
- EL ESPAÑOL. China and India are competing for leadership in green hydrogen production with Europe: only Spain competes in price. 18 Sep. 2026.
- MARKET2. Moeve starts its green hydrogen plant in Huelva and Wood will direct the Hydrogen Valley. 22 Sep. 2026.
- ENERGY REVIEW. Moeve begins construction of the Andaluz Valley of Green Hydrogen with 300 MW and 1,000 million. Sept. 2026.
- CINFORM. Low-carbon hydrogen decree marks a new stage in regulation. Sept. 2026.
- ECONOMIC MOVEMENT. The 2027 auction will be the first major test of green hydrogen for the Northeast. July 4, 2026.
