The European Commission has approved €440 million in funding for Andalucia to support the development of its renewable hydrogen sector, a move expected to significantly reduce carbon emissions in the region, The Olive Press reported.
The approval allows the Spain government to release the funds to expand green hydrogen production. Officials estimate the project could prevent nearly 1.8 million tonnes of carbon dioxide emissions once the facilities become operational.
The funding comes after energy company Moeve announced plans last year to begin construction of what it describes as Europe’s largest green hydrogen plant near Palos de la Frontera in Huelva in early 2026.
The project, known as the Andalusian Green Hydrogen Valley, is valued at around €3 billion and also includes another plant planned near San Roque in the Campo de Gibraltar area.
According to Moeve, the two facilities together could produce enough energy to power about 1.5 million homes, although most of the hydrogen will be used in industrial activities.
Green hydrogen is produced by splitting water into hydrogen and oxygen through a process called electrolysis, which uses electricity generated from renewable sources such as solar and wind power. Because the electricity comes from clean energy, the process releases little to no carbon emissions.
Officials said Andalucia’s strong solar and wind resources, along with its location close to major ports, make it suitable for large-scale renewable energy projects.
With the €440 million investment, Spain plans to build about 382 megawatts of electrolysis capacity in Andalucia. This could produce up to 243,800 tonnes of green hydrogen, enough to replace about one per cent of fossil fuels currently used in transport and heavy industries in the region.
