EDPR, Lhyfe to foster renewable hydrogen
31 May 2022
EDP Renewables (EDPR) and Lhyfe have agreed to jointly develop, build and manage renewable hydrogen production projects. The agreement between the two companies is contingent upon Lhyfe’s efforts to carry out an initial public offering and to list on the Euronext market in Paris.
Under terms of the agreement, EDPR will supply renewable electricity to Lyfe’s hydrogen generation projects. In addition, both companies will identify opportunities to co-develop projects, with EDPR providing up to half of the projects’ capital. The companies will also work together on research and development, new project development and equipment procurement.
EDPR said the agreement will boost the growth of EDPR’s portfolio, especially in France, and contribe to the development of Lhyfe’s projects all around the world. It also contributes to achieve higher operational and commercial expertise in renewable hydrogen projects.
“We are pleased to have closed this important agreement with Lhyfe as part of its IPO,” said Miguel Stilwell d’Andrade, CEO of EDP and EDP Renewables. “We believe that renewable hydrogen can complement the direct electrification as the best means for reducing CO2 emissions and achieving the decarbonization of the economy, including in the hard-to-electrify sectors.”
“We are very proud to conclude this agreement with one of the world’s largest renewable energy producers. The trust placed in us by EDPR allows us to confidently consider the development of our renewable hydrogen worldwide and on a large scale. We look forward to developing our future production sites alongside them, and to immediately decarbonising local mobility and industrial uses, thanks to the pooling of our strengths.”
EDP has committed to deploy 1.5 GW of green hydrogen production capacity by 2030. The group has created the H2 Business Unit (H2BU), especially dedicated to the development of renewable hydrogen projects and focused on developing opportunities in promising sectors, such as the steel industry, chemicals, refineries, and cement plants, as well as heavy-duty long-distance transport.
EDP is one of 13 entities in a consortium building the GreenH2Atlantic, a 100 MW renewable hydrogen production project in Portugal which is one of the three projects selected by the EU Green Deal Call to demonstrate the viability of green hydrogen production.
EDP is also promoting other projects in Spain and in Brazil, under its fair transition plans to transform coal plants into clean technology hubs, leaving no one behind. Additionally, EDP is actively engaging with relevant hydrogen players, leveraging on its significant portfolio of renewable assets, namely in the USA.
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 GW of total installed capacity in 93 projects under development in Europe and plans to install 200 MW by 2026 and 3 GW by 2030. Among these 93 projects, 20 are at an advanced stage of development, with a total capacity of 380.5 MW 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.
The two companies said they expect global demand for hydrogen to increase sixfold between 2020 and 2050, reaching 530 million tons in 2050, driven by economic growth and the multiplication of uses, both in industry and in mobility. The share of renewable hydrogen should represent 60% of total hydrogen demand by 2050.
Created in Nantes in 2017, Lhyfe produces and supplies renewable green hydrogen for mobility and industry. EDP Renewables is the world’s fourth largest wind energy producer.