Green hydrogen producer Lhyfe has officially received confirmation of a €149 million grant from the French government to support the construction of its upcoming hydrogen production plant near the Grand Canal of Le Havre. The grant, signed by the French Prime Minister, marks a major step forward for the company’s Green Horizon project, reports Environ News.
The plant, which aims to produce up to 34 tonnes of green hydrogen per day, was selected in 2022 as part of the European Commission’s Important Projects of Common European Interest (IPCEI) initiative focused on hydrogen. The grant was first announced in March 2024 by Roland Lescure, then Minister Delegate for Industry and Energy, during a visit to the region.
The funding agreement, signed with Bpifrance, outlines a phased disbursement plan. Lhyfe will receive an initial advance of €18 million by June 2025 to cover investments already made and to begin the next phases of the project. Additional payments will follow over the next four years, tied to the achievement of specific project milestones.
Located in Gonfreville-l’Orcher on a 2.8-hectare site, the plant is scheduled for completion by 2029 and will be one of the first large-scale facilities in France and Europe to produce decarbonised hydrogen via water electrolysis. The project is expected to play a key role in reducing the carbon footprint of the Le Havre industrial and port area, including supporting the decarbonisation efforts of nearby industrial players such as Yara.
The Green Horizon project is part of France’s broader strategy to scale up renewable hydrogen production. With a national target of reaching 4.5 GW of installed electrolysis capacity by 2030, projects like Lhyfe’s are seen as essential to demonstrating the feasibility of hydrogen as a key energy source and to reducing reliance on fossil fuels.
Lhyfe has already submitted the necessary building permit and environmental applications. Grid connection and electricity supply for the plant have been secured.
Matthieu Guesné, founder and CEO of Lhyfe, expressed his pride in the support shown by the French government and the European Commission. “This is a strong vote of confidence in a small company capable of innovation and rapid progress,” he said. “This project will allow us to cross the 100 MW milestone in installed capacity—a major step in our industrial growth.”
Commenting on the French National Hydrogen Strategy, Guesné welcomed the government’s clear production targets and support mechanisms. “This brings the clarity and long-term visibility needed to advance projects and investments,” he added, noting that France is now positioned to lead Europe in hydrogen development thanks to its industrial strength and policy support.
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