MADRID, March 2 (Reuters) - 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 on Monday 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 will keep 51% of the project, while Masdar and renewable energy firm Enalter will hold the remaining stake.

Owned by Abu Dhabi fund Mubadala and U.S.-based private equity firm the Carlyle Group CG.O, Moeve 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.

Moeve also said on Monday its net profit rose to 341 million euros last year from 92 million euros a year earlier.

Moeve said its talks with Portuguese energy firm Galp GALP.LS to combine their refining, chemicals and fuel retail businesses continued and were still in a non-binding phase.

($1 = 0.8519 euros)

(Reporting by Pietro Lombardi. Editing by Mark Potter)

((Pietro.Lombardi@thomsonreuters.com;))