Lhyfe and EDP Renewables Ink 15-Year Power Purchase Agreement

lhyfe green hydrogen

Lhyfe, a leader in green and renewable hydrogen production, and EDP Renewables, have sealed a 15-year Corporate Power Purchase Agreement (CPPA).

The agreement entails Lhyfe procuring renewable electricity from a 39 MWac (55 MWp) solar project located in Germany, meticulously developed by EDPR through Kronos Solar EDPR. This solar project is anticipated to be integrated into the grid by the year 2025.

As per the mutual agreement, EDP Renewables commits to supplying renewable electricity to fuel Lhyfe’s hydrogen generation initiatives, with both entities actively seeking opportunities for joint project development aimed at decarbonizing sectors where conventional electrification proves impractical.

For Lhyfe, this CPPA stands as its most significant commitment to date and serves as a secure foundation for the renewable power supply needed for its upcoming green hydrogen production facilities in Germany.

Lhyfe is currently erecting two production units in Baden-Württemberg and Lower Saxony, boasting a combined maximum production capacity of 8 tonnes of green and renewable hydrogen daily. This eco-friendly hydrogen will be distributed locally for various applications in mobility and industrial processes.

Furthermore, the CPPA allows Lhyfe to fortify its network of European renewable electricity supplier partners, following the execution of two additional CPPAs in 2023, all while ensuring competitive sales conditions for renewable hydrogen in the long run.

For EDP Renewables, this agreement is a significant milestone as it marks the first long-term corporate contract for renewable energy supply inked in Germany since its expansion. It also stands as the initial PPA established with a hydrogen-focused company. With this latest contract, EDPR affirms its robust PPA activity with utilities and major corporations, with over 55 percent of the 2023-2026 additions already firmly secured.

Having entered the German market in 2022 through the acquisition of Kronos Solar EDPR, EDP Renewables currently boasts a pipeline of over 8 GWp in various stages of development in solar utility scale, including agri-PV projects. While the company’s current focus in Germany lies in solar technology, it harbors ambitions of venturing into wind projects by the end of the decade.

Duarte Bello, Chief Operating Officer for Europe at EDP Renewables, expressed enthusiasm about the long-term agreement, emphasizing its significance in furthering the penetration of renewable energy in Europe.

Matthieu Guesné, CEO and founder of Lhyfe, lauded the agreement for securing their renewable electricity supply in a local and long-term manner.