Lhyfe has announced that the French Prime Minister has officially confirmed, by signature, a €149 million ($169 million) grant for its future green hydrogen production plant located near the Grand Canal of Le Havre.

 

The facility is expected to reach  a capacity of up to 34 tonnes per day. The project was selected in 2022 by the European Commission as part of the third wave of IPCEI (Important Projects of Common European Interest) dedicated to hydrogen.

 

In March 2024, the French government announced its decision to award this grant to Lhyfe, through Roland Lescure - then Minister Delegate for Industry and Energy - during a visit to Le Havre1. 

 

A PHASED PUBLIC SUPPORT SCHEME

 

The contract signed with Bpifrance outlines the terms of implementation for the public funding. Lhyfe will receive an initial advance of €18m by June 2025, enabling it to cover investments already made since 2022 and to launch the next stages. A second tranche will be released in the following months based on the achievement of milestones specified in the contract. Subsequent payments will take the form of reimbursements for eligible and duly justified expenses, contingent upon the successful completion of predefined annual milestones, over a four-year period and up to a maximum total amount of €149m.

 

Green Horizon: decarbonising one of Europe's largest industrial port areas

 

With the Green Horizon project, Lhyfe intends to produce up to 34 tonnes of green hydrogen per day near the Grand Canal du Havre (Normandy), one of Europe's largest industrial port areas.

 

This site will supply the region's needs in terms of decarbonisation of industry and mobility. The plant will be located near the Yara site in Le Havre, whose decarbonisation roadmap includes the use of green hydrogen. Yara is interested in and supports Lhyfe's project.

 

The Lhyfe production site, to be located on a 2.8-hectare plot of land in Gonfreville-l'Orcher, is expected to be completed by 2029 and will be one of the first large-scale production sites for decarbonised hydrogen produced by water electrolysis in France and Europe.

 

Completion of this project will help demonstrate the technical feasibility and economic viability of this solution, which is an essential complement to direct electrification for decarbonising economies, reducing dependence on fossil fuels and meeting the greenhouse gas emission reduction targets set out in the Paris Agreement.

 

This type of pioneering project must be implemented swiftly to pave the way for the larger-scale facilities needed to meet the ambitious targets for installed electrolysis capacity (4.5 GW targeted in France by 2030) and greenhouse gas emission reductions outlined in the French and European hydrogen and decarbonisation strategies.

 

This project has been selected by the French government as part of the call for expressions of interest on hydrogen carried out in France in 2021, integrated into the third wave of IPCEI on hydrogen in 2022 and validated by the European Commission in February 2024. IPCEI are transnational projects identified as strategic by the European Union. 

 

For this project, Lhyfe has already submitted the building permit and the environmental authorisation request. Grid connection and availability of the necessary power have been secured.

 

Matthieu Guesné, founder and CEO of Lhyfe : “We are proud to receive this grant, which reflects a strong vote of confidence from the French government and the European Commission in a SME that is capable of innovating, meeting complex technological challenges and rapidly turning its ambitions into reality. It also recognises our ability to invest heavily and rally renowned international partners to our side. By contributing to the decarbonisation of Le Havre industrial-port area starting in 2029, the Green Horizon project marks a real turning point – one that is essential if we are to decarbonise our industrial uses on a large scale. With this project Lhyfe will surpass the 100 MW milestone in installed electrolysis capacity: a true industrial leap forward!” -TradeArabia News Service