An agreement between Lhyfe and EDP Renewables (EDPR) has been created, which states that EDPR will provide Lhyfe’s hydrogen projects with renewable electricity. This contract is a 15-year renewable electricity supply contract, which will benefit both companies.
The companies have entered into a Corporate Power Purchase Agreement (CPPA) that will involve Lhyfe buying renewable energy from EDPR. This renewable energy is generated by a 55MWp solar project, which is based in Germany. This project will be connected to the grid by 2025 and EDPR has decided to develop the project on their end via Kronos Solar EDPR. This new agreement, stemming from a long-term, pre-established contract with Lhyfe, helps EDPR in their journey towards maintaining their excellent PPA activity, such as, their work with utilities and major companies. This portfolio of companies has been slowly expanding and the company has successfully secured over 55% of their 2023 to 2026 additions.
This agreement will benefit both parties involved and in particular after signing two previous CPPAs in 2023, this new CPPA will give Lhyfe the ability to continue reinforcing their European network of electricity supplier partners. Lhyfe is currently building two new production units in Baden- Württemberg and in Lower Saxony. These new units will expand Lhyfe’s green hydrogen capacity to eight tons per day.
EDPR is currently focused on developing their pipeline of more than 8GWp, set up through Kronos Solar, which is at different stages of development in solar utility scale. This new agreement will enable EDPR to push this project, focused on solar technology forwards and will also help them to develop their business into a place it could expand into wind projects by 2030.
CEO and Founder of Lhyfe, Matthieu Guesné, commented, “Almost the entire output of the EDPR photovoltaic (PV) solar plant will be used to power our green and renewable hydrogen production sites contributing to the decarbonisation of mobility and industry which currently use fossil fuels or carbon-derived hydrogen.”
Chief Operating Officer for Europe at EDP Renewables, Duarte Bello, mentioned, “Signing this long-term agreement with Lhyfe is an important opportunity for EDPR as it reinforces our commitment to ramp up the penetration of renewable energy in Europe, especially in a market that has the ambition to achieve significant PV targets by the end of this decade. We are happy to be able, through Kronos Solar EDPR, to contribute to these goals by partnering with Lhyfe, whose activity complements our aim of reducing CO2 emissions.”