Lhyfe and Elyse Energy’s e-methanol project in France gaining ground

The conclusions of the initial studies on the e-methanol project Green Coast will be communicated in 2025, according to the French hydrogen producer Lhyfe and compatriot e-fuel company Elyse Energy. The project is currently under development and is subject to the granting of operating licences, building permits and financial investment decisions.

The companies, which joined forces to develop the production of e-methanol from green renewable hydrogen at the Montoir-de-Bretagne site within the port of Nantes Saint-Nazaire in France in July 2024, claimed the project is of “major” importance for the area and for the entire maritime transport sector, which is seeking to achieve decarbonization.

The partners said that decarbonizing maritime transport is a key challenge for achieving the dual objective of carbon neutrality and an exit from fossil fuels, pointing out that e-methanol produced from renewable green hydrogen is one of the keys to decarbonizing this sector.

To remind, Nantes Saint-Nazaire Port selected Lhyfe to set up an industrial production and distribution operation for green hydrogen in late 2023. At the time, Lhyfe presented its plans to build an industrial unit with a renewable green hydrogen production capacity of up to 85 tonnes per day (installed electrolysis capacity of 210 MW), in Montoir-de-Bretagne, to the north of the Multivrac terminal, by 2028. Nearby, Elyse Energy positioned itself to produce renewable fuel in the industrial port zone.

A synergy between these two parties led to the signing of an exclusive agreement to study the feasibility of producing e-methanol from Lhyfe’s green hydrogen, in order to decarbonize maritime transport. The rest of the production would be used to decarbonize mobility and industry locally. Elyse plans to produce 150,000 tonnes of e-methanol a year at the site.

Matthieu Guesné, Founder and CEO of Lhyfe, commented: “This project, located at the heart of the Nantes Saint-Nazaire industrial port ecosystem, is a beacon of hope. There is an urgent need to move towards a more frugal consumer society, but also to put in place cleaner and safer solutions to decarbonise the uses that we cannot eliminate. E-methanol produced from green hydrogen is one of these solutions, which is particularly well suited to the shipping industry… We know Saint-Nazaire well, having built our pioneering Sealhyfe platform there. Together with Elyse, and with the support of the region, we are proud to be leading this important project for the future.”

Pascal Penicaud, CEO of Elyse Energy, stated: “Climate change is the challenge of the century. Scientists keep reminding us of this, report after report. The path is both simple and ambitious. To limit its effects and scale, we need to decarbonise all industries, and we need to do it now… We are delighted to be joining forces with Lhyfe to fight this battle together, at the heart of the Nantes Saint-Nazaire industrial port area, with the Green Coast project. The e-methanol produced by the project will provide a local, low-carbon solution for the shipping industry, while drastically reducing emissions of atmospheric pollutants from ships and contributing to the region’s industrial vitality.”

Jean-Rémy Villageois, Chairman of the Management Board of Nantes Saint-Nazaire Port, said: “…As a national energy hub, the Port of Nantes Saint-Nazaire, supported by the region’s economic and institutional players, has taken action on numerous fronts to accelerate its transition and become a low-carbon energy hub by 2050. The Green Coast project, led by Lhyfe and Elyse, adds a new brick to the decarbonisation of the Loire Estuaire industrial area, and also echoes the GO CO2 project to capture and recycle the unavoidable and biogenic CO2 emitted by industrial companies in Pays de la Loire and western France. Green Coast is fully in line with the decarbonisation targets set at European and national level, as are all the actions belonging to the roadmap we have collectively set ourselves to make a success of this transition.”

To note, Green Coast is part of the Loire Estuaire Décarbonation initiative, supported by France 2030 via the Low Carbon Industrial Zone or ZIBaC call for projects, and led by ADELE, which includes Saint-Nazaire Agglomération, the Estuaire & Sillon association of municipalities, the Pays de la Loire Region, Nantes Saint-Nazaire Port and the Association des Industriels Loire Estuaire (AILE).