French hydrogen producer Lhyfe has been awarded a grant of up to €14 million to develop its first green hydrogen production plant in Spain.
The grant was awarded H2 Pioneros, a funding call created in Spain to support initiatives in renewable energy, green hydrogen, and energy storage.
Lhyfe’s project is one of fourteen projects across Spain that were awarded grant financing through H2 Pioneros in 2023. The grant, which will fund the design phases, the supply of equipment, and the construction work, represents about half of the total estimated investment in the project.
The 15 MW green hydrogen production plant is projected to deliver up to 5 tons of green hydrogen per day to local industrial customers. The first kilos of green hydrogen are planned to be produced in 2026.
The plant will be located in an industrial area in Vallmoll, Tarragona, and its potential clients include companies active in the chemical and other industrial sectors as well as transport or logistics companies looking to replace their fleet with less polluting vehicles like hydrogen-powered electric vehicles.
“We are very happy to have been awarded this grant, which we see as a clear reward of our efforts and as the recognition of our expertise in the production and delivery of green hydrogen to multiples customers over the last two years. It is also a proof of us going the right direction in Spain, and we would like to reiterate our commitment to the Spanish hydrogen strategy and welcome the fact that Spain is focusing on the rapid expansion of a hydrogen infrastructure based on renewable energies,” said Taia Kronborg , Chief Business Officer at Lhyfe.
“This project will make a significant contribution towards providing competitive green hydrogen for many industrial and transport companies in the province of Tarragona. It will support our objective to increase the penetration of green hydrogen throughout Spain in other similar industrial processes.”
Earlier this year, Lhyfe also signed a collaboration agreement with Capital Energy for the joint development of offshore renewable hydrogen projects in Spain and Portugal.
The company aims to have 200 MW of green hydrogen production capacity by the end of 2026 and 3 GW by the end of 2030.