Lhyfe, a French green hydrogen (H2V) producer, is positioning itself in a wide range of key markets with a portfolio of projects representing a capacity of 9.5 GW.

Geographically, the portfolio is divided between Northern Europe with 70%, Western Europe with 27.5%, and Southern Europe with 2.5%, as detailed by Franz Bechtold, commercial director of Lhyfe in Spain.

“The company has an extensive portfolio in development across Europe. Currently, we are working on dozens of projects, with a focus on France, Germany, and Nordic countries. The goal is to install 3 GW by 2030,” says Bechtold in an interview with Energía Estratégica España.

Within these 9.5 GW, the projects in advanced development phases, such as those in tender, secured, or under construction, total an installed capacity of 598 MW.

The company has a presence in key markets such as Germany, the Netherlands, the United Kingdom, Spain, and Sweden. Additionally, it has offices in Belgium, Finland, Norway, Portugal, and has recently expanded to Canada.

“In these countries, we are developing production plants, strategic alliances, and feasibility studies to meet the demand for renewable hydrogen across multiple sectors. We will continue to focus on the European market,” emphasizes the executive.

He adds, “There is much to be done to develop green hydrogen for sectors such as land and maritime mobility, but also in different industrial sectors.”

Objectives

In addition to the goal of reaching 3 GW by 2030, Lhyfe aims to become a European leader in the production of green and renewable hydrogen.

“The company’s ultimate goal is to become a ‘green unicorn’ and avoid the emission of 1 billion tons of CO2. In the short term, we aim to become a major player in bulk mobility use in France and Germany by 2025, and deploy our first ‘onsite’ plants for industry starting in 2028. We also aim to meet the green hydrogen production and supply goals in Europe,” says the representative of Lhyfe in Spain.

In the short term, the company aspires to install 20 MW of electrolysis capacity by the end of 2024.

On the other hand, Bechtold confirms that they seek to innovate in various areas such as optimizing green hydrogen production and logistics, promoting market development through tools like the creation of the H2 market, and investing in project diversification.

Technology Diversification

One of the company’s bets is technology diversification. They currently have offshore green hydrogen installations like Sealhyfe, the first global H2V production plant, which operated during 2022 and 2023.

They are now working on the HOPE project, developed by the company alongside 8 European partners. This project is expected to be operational in 2026 in Ostend (Belgium) and will be ten times larger than Sealhyfe, according to Bechtold.

He adds, “Hydrogen production through offshore wind turbines will allow all coastal countries to access locally produced renewable green hydrogen in industrial quantities to decarbonize transport and industry.”

Between 2030 and 2035, the company aims to achieve an installed capacity of 3 GW with this technology.

Additionally, they are working on ocean reoxygenation with the BOxHy project in the Baltic Sea. “Our ultimate goal is to produce hydrogen at sea and use the oxygen co-produced during water electrolysis to reoxygenate the oceans,” details the executive.

Sector Analysis

From Lhyfe, they point out that the green hydrogen sector is at a “turning point in Europe,” as the need for decarbonization is driving both demand and supply, and they foresee sustained growth in the medium term with significant advances in production technology, logistics, and industrial use.

According to the company’s view, the largest demand for the energy comes from heavy transport mobility like trucks, buses, and trains, as well as maritime mobility where e-methanol produced with H2V can replace fossil fuels. Additionally, energy-intensive sectors like steel, glass, and electronics are looking to decarbonize their processes by replacing gray hydrogen with green hydrogen.

However, they express that there are still obstacles such as distribution infrastructure and the need for supportive policies and clear regulation at the European level.

“To make green hydrogen projects viable and financeable, favorable regulation is essential. Clear public policies are needed to support the technology, such as subsidies, carbon pricing mechanisms, and mandatory quotas for use in key sectors,” says Bechtold.

The Spanish hydrogen sector points out that mandatory requirements in industry could be a tool to boost the sector as “subsidies alone are not enough.”

In this context, the representative of Lhyfe states that mandatory requirements are a crucial element in the strategy towards carbon neutrality. However, he emphasizes that these must be part of a broader framework so that the industry does not lose competitiveness.

“Thus, the EU’s Carbon Border Adjustment Mechanism (CBAM), or even funding to reduce the cost of the energy transition, is indispensable. It is a balance that must be found and implemented,” he adds.

In addition to regulation, he notes that more specific financial instruments are needed to promote the sector, such as loan guarantees, hydrogen investment funds, and support from the European Investment Bank. He also points to the development of distribution and storage networks as necessary requirements to reduce costs and facilitate the adoption of technology.