Lhyfe (Euronext: LHYFE), one of the world’s pioneers in green and renewable hydrogen production, and EDP Renewables (Euronext: EDPR), a global leader in the development of renewable energy, are announcing the signing of a 15-year renewable electricity supply contract or Corporate Power Purchase Agreement (CPPA).
Under this 15-year PPA, Lhyfe will buy renewable energy generated by a 39 MWac (55 MWp) solar project in Germany developed by EDPR, through Kronos Solar EDPR, that is expected to be connected to the grid during 2025.
This PPA is the first materialization of the industrial agreement between the two companies, in which it was agreed that EDPR will supply renewable electricity to Lhyfe’s hydrogen generation projects and both companies will identify opportunities for the co-development of projects to decarbonize challenging sectors where electrification is not feasible.
For Lhyfe, this CPPA is its largest to date and secures the renewable power supply for its future green hydrogen production sites in Germany, thus consolidating its sustained growth. In Baden-Württemberg and in Lower Saxony, Lhyfe is building two production units representing a maximum total production capacity of 8 tonnes of green and renewable hydrogen per day, which will be supplied locally for uses related to mobility and industrial processes. This CPPA allows Lhyfe to further reinforce its European network of renewable electricity supplier partners, following the signing of two other CPPAs in 2023, while guaranteeing competitive sales conditions for renewable hydrogen in the long-term.
For EDP Renewables, this deal is a milestone as it is the first long-term corporate contract for renewable energy supply signed in Germany since its expansion and also the first PPA signed with a hydrogen company. This PPA reflects its success in securing new PPAs and reinforces its low-risk profile and growth strategy based on the development of competitive projects with long-term visibility, fostering the acceleration of the energy transition and the decarbonization of the economy. By signing another long-term contract with a major client, EDPR reaffirms its strong PPA activity with utilities and big companies, and nowadays has more than 55% of the 2023-2026 additions already secured.
EDPR entered Germany in 2022 through the acquisition of Kronos Solar EDPR and currently has a pipeline of over 8 GWp in different stages of development in solar utility scale, including agri-PV projects. Although EDPR’s business in Germany is focused on solar technology, the company has the ambition of developing wind projects in the country by the end of the decade.
“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 photovoltaic 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”, highlights Duarte Bello, Chief Operating Officer for Europe at EDP Renewables.
“Thanks to this agreement, we are securing in a local and long-term manner our renewable electricity supply. Almost the entire output of the EDPR photovoltaic 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. We also keep strengthening our strategic relation with EDPR, with whom we are extremely happy to jointly collaborate in the H2 industry”, says Matthieu Guesné, CEO and founder of Lhyfe.
