French PM confirms €149 million grant for Lhyfe’s green hydrogen plant near Le Havre

The French Prime Minister (PM) has officially confirmed, by signature, a €149 million grant for Lhyfe’s future green hydrogen production plant located near the Grand Canal of Le Havre, one of Europe’s largest industrial port areas.

The project was selected in 2022 by the European Commission as part of the third wave of Important Projects of Common European Interest (IPCEI) dedicated to hydrogen. In March 2024, the French government announced its decision to award the grant to Lhyfe.

It is understood that the company will receive an initial advance of €18 million by June 2025, enabling it to cover investments already made since 2022 and to launch the next stages. A second tranche is expected to be released in the following months. According to Lhyfe, the 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 and up to a maximum total amount of €149 million.

With the Green Horizon project, Lhyfe intends to produce up to 34 tonnes of green hydrogen per day. The site is expected to be completed by 2029 and, as reported, will be one of the first large-scale production sites for decarbonized hydrogen produced by water electrolysis in France and Europe.

The plant will be located near Yara’s plant site in Le Havre, whose decarbonization roadmap includes the use of green hydrogen. The Norway-based company is said to be interested in and supports Lhyfe’s project.

As informed, Lhyfe has already submitted the building permit and the environmental authorization request for the plant, and grid connection and availability of the necessary power have been secured.

To note, the French company has, reportedly, been producing and delivering green hydrogen for over four years, with its first plant completed in 2021. Reportedly, it supplies customers directly and relies on a fleet of nearly 70 containers. As part of the onsite Green Horizon project, hydrogen will be delivered primarily by pipeline, with a direct connection to the customer’s industrial site, the company revealed.

Matthieu Guesné, Founder and CEO of Lhyfe, commented: “We are proud to receive this grant, which reflects a strong vote of confidence from the French government and the European Commission in a SME that is capable of innovating, meeting complex technological challenges and rapidly turning its ambitions into reality. It also recognizes our ability to invest heavily and rally renowned international partners to our side.”

“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 decarbonise our industrial uses on a large scale. With this project Lhyfe will surpass the 100 MW milestone in installed electrolysis capacity: a true industrial leap forward!”

In other news, Lhyfe signed a contract with compatriot technology company INOCEL covering the supply of up to 140 tonnes of green hydrogen over a period of four years for the test benches of fuel cells manufactured by INOCEL. By relying on green hydrogen, the two companies, allegedly, intend to promote sustainable energy solutions and accelerate the decarbonization of critical industrial sectors, particularly stationary applications and mobility.

It is also worth mentioning that Lhyfe entered a memorandum of understanding (MoU) with Abu Dhabi Future Energy Company (Masdar) to explore potential co-development opportunities in large-scale green hydrogen production projects in Europe. It is understood that, through this strategic partnership, the parties aim to explore collaboration and investment opportunities across the green hydrogen value chain.

• Lhyfe and INOCEL pen four-year hydrogen supply deal
• Masdar and Lhyfe partner up for large-scale hydrogen projects in Europe