France – EDP Renewables (EDPR) and Lhyfe have signed an industrial agreement to jointly identify, develop, build, and manage hydrogen-related projects.
EDPR will supply renewable electricity to Lhyfe’s hydrogen generation projects under the terms of the agreement. In addition, the two companies will look for opportunities to collaborate on project development, with EDPR potentially owning up to 50% of the project’s capital. In addition, the companies will collaborate on R&D, new project development, and equipment procurement.
This agreement aims to add value by leveraging synergies between the two companies’ complementary skills and capabilities, boosting EDPR’s portfolio growth, particularly in France, and contributing to the development of Lhyfe’s projects around the world. It also helps to improve operational and commercial knowledge in renewable hydrogen projects.
Hydrogen goals
By 2030, EDPR wants to deploy 1.5 GW of green hydrogen production capacity. Indeed, the company has established the H2 Business Unit (H2BU), which is devoted to the development of renewable hydrogen projects and focuses on developing opportunities in promising industries like steel, chemicals, refineries, and cement plants, as well as heavy-duty long-distance transportation.
The goal of Lhyfe’s IPO is to fund the company’s development and growth strategy. The company has more than 4.8 GW of total installed capacity in 93 projects in Europe under development, with plans to install 200 MW by 2026 and 3 GW by 2030.
The importance of hydrogen is demonstrated by the prediction that global demand for hydrogen will increase sixfold between 2020 and 2050, reaching 530 million tons in 2050, owing to economic growth and the expansion of applications in industry and mobility. By 2050, renewable hydrogen should account for 60 percent of total hydrogen demand.
