Spanish energy company Moeve has approved a major green hydrogen project involving more than 1 billion euros ($1.2 billion) in investments, with Abu Dhabi renewable energy company Masdar as a minority partner.

Moeve said it had taken the final investment decision on the first part of the Andalusian Green Hydrogen Valley in Spain, which will have a capacity of 300 megawatts and the possibility to add another 100 MW depending on grid availability and board approval.

It will be the largest such project in southern Europe, it said.

The company last week secured a connection to the Spanish grid for the project. A dedicated solar power plant will supplement energy from the grid. The project is supported by more than 300 million euros in European Union subsidies.

Moeve, owned by Abu Dhabi fund Mubadala and U.S.-based private equity firm the Carlyle Group CG.O will keep 51% of the project, while Masdar and renewable energy firm Enalter will hold the remaining stake.

Moeve, formerly Cepsa, rebranded in 2024 to reflect its shift towards low-carbon businesses under an 8-billion-euro plan. It has sold most of its oil production assets since 2022, including operations in Abu Dhabi and South America.

It continues its non-binding talks with Portuguese energy firm Galp to combine their refining, chemicals and fuel retail businesses.

The companies are working to complete due diligence with a view to reaching a final agreement by mid-2026, Moeve's Chief Financial Officer, Carmen de Pablo, said in a call to present 2025 results. Moeve's net profit rose to 341 million euros last year from 92 million euros in 2024.

The widening Iran conflict has not had any direct impact on the company's operations so far, while it was too early to assess the potential indirect impact, she said. Moeve does not source Iranian crude and has no assets in the region, she added.