Germany and France are the epicentre of Lhyfe’s most ambitious developments. In Lumbin (Germany), the company is advancing an 800 MW project expected to deliver 300 tonnes of hydrogen per day for industrial use, with commissioning planned by the end of 2030.

Meanwhile, in the port of Saint-Nazaire (France), the company is promoting a 200 MW plant aimed at supplying regional industries. Both represent the company’s industrial leap, positioning it as one of the most aggressive in terms of scalability. So says Franz Bechtold, Sales Director Spain at Lhyfe, in an interview with Strategic Energy Europe.

The goal is clear: to reach 3 GW of green hydrogen production capacity by 2030 across operational and development projects. Looking ahead to 2035, Lhyfe is aiming even higher: to deploy offshore units in deep waters capable of generating massive volumes. “We are talking about gigawatts,” Bechtold highlights.

Spain in the strategy: Concrete projects and on-site solutions

The Spanish market is strategic for Lhyfe’s expansion, although its development has been compared to other European countries. The company will build its first national plant in Vallmoll (Tarragona), with a capacity of 15 MW, an estimated production of 4.5 to 5 tonnes per day, and commissioning planned for 2027.

The investment includes 14 million euros from the “Pioneros” programme, and is complemented by combustion tests carried out in the ceramic sector of the Valencian Community. “They are going to be a benchmark within the group. We can apply this in cement plants, steelworks, frits or glass,” says Bechtold.

“At the same time, we are working on large-scale plants for implementation, for connection to the pipeline, to the backbone network. But these are projects under development. And we are working on two plants for mobility,” he adds.

Lhyfe is committed to on-site models, where hydrogen is produced directly at the site of industrial consumption. This helps to avoid high logistical costs and enables tailored solutions for industries seeking to decarbonise intensive processes.

Green hydrogen map

Although Spain represents a new frontier, the Lhyfe representative highlights key markets such as France, Germany, the Netherlands, Sweden, and the United Kingdom. Each country brings its own added value:

• France and Germany offer volume and structured regulatory frameworks.

• The Netherlands, with its industrial ports and wind capacity, enables immediate logistical connection.

• The United Kingdom has implemented direct subsidies to cover the cost difference between natural gas and hydrogen.

• Sweden, with its clean and hydro-based electricity matrix, is a technical model of energy balance.

Bechtold points out that Spain has great renewable potential, but faces barriers such as the lack of a suitable power grid and the distance between generation and industrial consumption.

Progressive scale-up: How Lhyfe moved from 1 MW to 3 GW

Lhyfe’s growth has been technical. The company started operations in 2021 with a 1 MW plant directly connected to a wind farm. “In that project, we learned to connect and operate an electrolyser,” recalls Bechtold.

Since then, it has scaled up to 5 and 10 MW units, incorporated offshore pilots and is now designing facilities of 50, 100 and 200 MW. The key to that growth has been a focus on specialisation: “We are a pure player in hydrogen; we don’t come from solar, gas or chemical sectors, we have no other assets to monetise,” says the executive.

Costs, barriers and challenges: When will green hydrogen become profitable?

Bechtold is critical of the current public aid model, especially the Hydrogen Bank system, which encourages low-bid offers. “Offering subsidies of 30–40 cents per kilo for pre-selected projects in Spain puts into question the viability of some of those projects,” he says of the recent second hydrogen auction, drawing from Lhyfe’s project execution experience.

Such low bids may not be enough to cover production costs, which can vary greatly depending on the energy supply strategy, site location and equipment procurement. He also laments the incompatibility between different aid programmes, such as PERTE, Pioneros and the Hydrogen Bank: “I cannot combine subsidies. That slows down the sector’s development.”

However, electrolyser prices have not dropped as expected: “Instead of falling, they have gone up due to increased demand and the lack of large-scale factories.”