EDPR and Lhyfe partner up for renewable hydrogen
Wind energy producer EDP Renewables (EDPR) has entered into an industrial agreement with green hydrogen production company Lhyfe to jointly work on renewable hydrogen projects.
Under the agreement, EDPR will supply renewable electricity to Lhyfe’s hydrogen generation projects. In addition, the two companies will identify opportunities for the co-development of projects, with EDPR’s shareholding potentially reaching up to 50 per cent of the projects’ capital.
The companies will also work together on R&D activities, new project development, and equipment procurement.
This is to boost the growth of EDPR’s portfolio, especially in France, and contribute to the development of Lhyfe’s projects all around the world. It also contributes to achieving higher operational and commercial expertise in renewable hydrogen projects.
Miguel Stilwell d’Andrade, CEO of EDP, said: “We believe that renewable hydrogen can complement direct electrification as the best means for reducing CO2 emissions and achieving the decarbonization of the economy, including in the hard-to-electrify sectors. With this agreement with Lhyfe, we reinforce our commitment to the acceleration of the energy transition while also taking one step toward the achievement of our growth plans.”
Matthieu Guesné, CEO of Lhyfe, added: “The trust placed in us by EDPR allows us to confidently consider the development of our renewable hydrogen worldwide and on a large scale.”
EDP’s ambition is to deploy 1.5 gigawatts of green hydrogen production capacity by 2030. In fact, the group has created the H2 Business Unit (H2BU), specifically dedicated to the development of renewable hydrogen projects.
The company is also included in various projects such as the GreenH2Atlantic, a 100-megawatt renewable hydrogen production project in Sines, Portugal which is one of the three projects selected by the EU Green Deal Call to demonstrate the viability of green hydrogen production. It is also promoting other projects in Spain and in Brazil. Additionally, EDP is engaging with relevant hydrogen players, leveraging on its significant portfolio of renewable assets, namely in the U.S.
As for Lhyfe’s IPO, its objective is to support the company’s development and growth strategy. The firm has a portfolio of more than 4.8 gigawatts of total installed capacity in 93 projects under development in Europe and plans to install 200 megawatts by 2026 and three gigawatts by 2030. Among these 93 projects, 20 are at an advanced stage of development, with a total capacity of 380.5 megawatts expected to come onstream between 2023 and 2026.
In September 2021, Lhyfe inaugurated the world’s first industrial plant directly connected to a wind farm and a seawater supply enabling electrolysis, and since then, it has begun delivering its green hydrogen to fuel mobility uses in the region.
Hydrogen’s relevance is explained in the forecast for global demand for hydrogen to increase sixfold between 2020 and 2050, reaching 530 million tonnes in 2050. The share of renewable hydrogen should represent 60 per cent of total hydrogen demand by 2050.