Lhyfe and Capital Energy to jointly produce green hydrogen from offshore wind farms
Leading green hydrogen producer and supplier, Lhyfe on Monday (June 12) announced that it has signed an agreement with Spanish energy producer and distributor, Capital Energy for the joint development of offshore renewable hydrogen projects in Spain and Portugal.
As per the agreement, the two companies will work together to create hydrogen production sites at some of the offshore wind farm sites currently being developed by Capital Energy. The joint installation of offshore wind farms and hydrogen production sites is said to have considerable benefits for both partners. The partnership is expected to bring in economic benefits through the economies of scale and social benefits through the growing industrial overlap of the projects, given that a greater number and variety of suppliers and specialists will be required.
"This agreement with Capital Energy is a tremendous opportunity to foster the transition to clean energy through the large-scale production of green hydrogen at sea. Producing H2 via electrolysis at sea will maximise the immense potential of offshore wind energy. Countries with a coastline, such as Spain and Portugal, can drastically reduce their dependence on fossil fuels and improve their national energy security, while producing net-zero emissions and boosting local economies," said Taia Kronborg, Chief Business Officer at Lhyfe.
Initiatives like these benefit the energy system as a whole as the wind energy produced in these wind farms would be more controllable, avoiding curtailments.
"Through this alliance, we intend to use some of the energy generated by our offshore wind farms to produce hydrogen, which will help to drive the energy transition in a balanced way and solve potential bottlenecks in the electricity system. It will also increase the socio-economic benefits of our offshore projects, with greater investment and more skilled jobs, said Pablo Alcón, Offshore Director at Capital Energy.
The collaboration agreement could potentially be extended to other markets in the future.