EDPR, Lhyfe join forces for the development of renewable H2
EDP Renewables (EDPR) has announced that it has entered into an industrial agreement with Lhyfe to jointly identify, develop, build and manage projects in the renewable hydrogen business area.
Under the said agreement, EDPR will supply renewable electricity to Lhyfe's hydrogen generation projects. In addition, the two companies will identify opportunities for the co-development of projects, with EDPR's shareholding potentially reaching up to 50 percent of the projects' capital. The companies will also work together on R&D activities, new project development, and equipment procurement.
This agreement envisages creating value, leveraging synergies from the complementary skills and capabilities of the two companies, boosting the growth of EDPR's portfolio, especially in France, and contributing to the development of Lhyfe's projects all around the world. It also contributes to achieving higher operational and commercial expertise in renewable hydrogen projects.
According to Miguel Stilwell d'Andrade, CEO of EDP and EDP Renewables: "We are pleased to have closed this important agreement with Lhyfe as part of its IPO. We believe that renewable hydrogen can complement direct electrification as the best means for reducing CO2 emissions and achieving the decarbonization of the economy, including in the hard-to-electrify sectors. With this agreement with Lhyfe, we reinforce our commitment to the acceleration of the energy transition while also taking one step toward the achievement of our growth plans."
According to Matthieu Guesné, founder and CEO of Lhyfe: "We are very proud to conclude this agreement with one of the world's largest renewable energy producers. The trust placed in us by EDPR allows us to confidently consider the development of our renewable hydrogen worldwide and on a large scale. We look forward to developing our future production sites alongside them, and to immediately decarbonizing local mobility and industrial uses, thanks to the pooling of our strengths."
This partnership with Lhyfe reaffirms EDP's commitment to the renewable hydrogen sector. The company's ambition is to deploy 1.5 GW of green hydrogen production capacity by 2030. The group has created the H2 Business Unit (H2BU), specially dedicated to the development of renewable hydrogen projects and focused on developing opportunities in promising sectors, such as the steel industry, chemicals, refineries, and cement plants, as well as heavy-duty long-distance transport.