France's Lhyfe eyes completion of green hydrogen plant at Le Havre by 2029

France's Lhyfe said April 17 it expected to complete a new green hydrogen production site near Le Havre in northern France by 2029 as it had a Eur149 million subsidy confirmed by the French government.

In a statement, Lhyfe said the Green Horizon project would produce up to 34 mt/day of green hydrogen near the Grand Canal of Le Havre, one of Europe's largest industrial port areas.

The grant was first announced in March 2024.

"Lhyfe announces that the French Prime Minister has officially confirmed, by signature, a Eur149 million grant for its future green hydrogen production plant," it said.

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.

Lhyfe will receive an initial advance of Eur18 million by June, enabling it to cover investments already made since 2022 and to launch the next stage of development.

A second tranche will be released in the following months based on the achievement of milestones specified in the contract, Lhyfe said.

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.

"The Lhyfe production site is expected to be completed by 2029 and will be one of the first large-scale production sites for decarbonized hydrogen produced by water electrolysis in France and Europe," the company said.

Existing supply

Lhyfe has already been producing and delivering green hydrogen for more than four years with its first plant completed in 2021.

It currently has four production sites in France and Germany and is developing a number of other sites throughout Europe.

As part of the Green Horizon project, hydrogen will be delivered primarily by pipeline, with a direct connection to the customer's industrial site.

Matthieu Guesne, founder and CEO of Lhyfe, said the grant reflected a "strong vote of confidence" from the French government and the European Commission in the company.

"By contributing to the decarbonization 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 decarbonize our industrial uses on a large scale," Guesne said.

"With this project, Lhyfe will surpass the 100 MW milestone in installed electrolysis capacity," he said.

Lhyfe also welcomed the revised French National Hydrogen Strategy announced April 16, which cut a 2030 target for electrolysis by 2 GW to 4.5 GW and set up a Eur4 billion low carbon hydrogen production support mechanism.

"[The strategy] now provides the clarity and long-term visibility that stakeholders across the hydrogen ecosystem need to make informed decisions and move forward," it said.

"By setting a realistic production target of 4.5 GW by 2030, and supporting it with subsidies and a dedicated support mechanism for low-carbon and renewable hydrogen production, the French government is aligning its tools with its ambitions."

Platts, part of S&P Global Commodity Insights, assessed the price of European electrolytic hydrogen (Netherlands, PEM electrolysis including capex) at Eur4.57/kg April 16.