One of Europe’s most ambitious projects to produce green hydrogen has secured final investment approval, offering a rare boost to a sector that has suffered a wave of cancellations and delays in recent years. 

Moeve, the $12bn energy group owned by the United Arab Emirates’ Mubadala and US private equity firm Carlyle, will confirm on Monday that its board has authorised the first phase of what it says will become Europe’s largest renewable hydrogen plant.

The initial stage of the Andalusian Green Hydrogen Valley development in southern Spain will involve more than €1bn of investment, including over €300mn in EU subsidies, to construct a 300MW electrolyser alongside new solar and wind generation.