Lhyfe and EDP Renewables sign long-term contract

This PPA is the first materialisation of the industrial agreement between the two companies, in which it was agreed that EDPR will supply renewable electricity to Lhyfe's hydrogen generation projects and both companies will identify opportunities for the co-development of projects to decarbonise challenging sectors where electrification is not feasible.

For Lhyfe, this CPPA is its largest to date and secures the renewable power supply for its future green hydrogen production sites in Germany, thus consolidating its sustained growth. In Baden-Württemberg and in Lower Saxony, Lhyfe is building two production units representing a maximum total production capacity of 8 tpd of green and renewable hydrogen, which will be supplied locally for uses related to mobility and industrial processes. This PPA allows Lhyfe to further reinforce its European network of renewable electricity supplier partners, following the signing of two other CPPAs in 2023, while guaranteeing competitive sales conditions for renewable hydrogen in the long-term.

For EDP Renewables, this deal is a milestone as it is the first long-term corporate contract for renewable energy supply signed in Germany since its expansion and also the first PPA signed with a hydrogen company. This PPA reinforces its low-risk profile and growth strategy based on the development of competitive projects with long-term visibility, fostering the acceleration of the energy transition and the decarbonisation of the economy.

“Thanks to this agreement, we are securing in a local and long-term manner our renewable electricity supply. Almost the entire output of the EDPR photovoltaic solar plant will be used to power our green and renewable hydrogen production sites contributing to the decarbonisation of mobility and industry which currently use fossil fuels or carbon-derived hydrogen. We also keep strengthening our strategic relation with EDPR, with whom we are extremely happy to jointly collaborate in the hydrogen industry," said Matthieu Guesné, CEO and Founder of Lhyfe.

Read the article online at: https://www.globalhydrogenreview.com/hydrogen/25012024/lhyfe-and-edp-renewables-sign-long-term-contract/