Lhyfe, a French producer of green and renewable hydrogen, has reached a significant milestone in its UK expansion with the shortlisting of two major projects under the second Hydrogen Allocation Round (HAR2). The UK’s Department for Energy Security and Net Zero (DESNZ) selected the Kemsley site in Kent and the Wallsend site in North Tyneside as candidates eligible for long-term financial support.
Both projects may benefit from a “Contract for Difference” (CfD) mechanism, securing a fixed sale price for hydrogen produced over a fifteen-year period. This financing model aims to ensure the economic viability of industrial sites and secure investment in the UK hydrogen sector.
On-site project in Kemsley and historical site in Wallsend
The Kemsley facility, with a capacity of 80 megawatts (MW), is designed to produce up to 32 tonnes of green hydrogen per day. It is located near a major industrial site, which forms the project’s primary commercial target. Meanwhile, the 20 MW Wallsend facility is based on the former Neptune Bank power station site and targets a daily production of 8 tonnes of hydrogen.
These projects are primarily aimed at industrial users and transport operators, responding to growing demand for energy alternatives to natural gas. By expanding its production capacity in the UK, Lhyfe seeks to strengthen its footprint in a rapidly growing market.
Strategic deployment in the UK via Lhyfe UK Ltd
Founded in 2022, the British subsidiary Lhyfe UK Ltd operates from Newcastle. It leverages experience gained by the parent company in France and Germany to accelerate the development of large-scale facilities across the UK. However, the proposed projects remain subject to regulatory approvals, construction permits, and the finalisation of contractual agreements with UK authorities.
The company also aims to explore offshore hydrogen production, capitalising on the UK’s substantial offshore wind potential. This strategic direction reflects an industrial expansion approach, aiming to diversify production methods and address the country’s energy ambitions.
Boris Davis, Business Development Manager of Lhyfe in the UK, stated: “This demonstrates the UK Government’s confidence in Lhyfe’s ability to rapidly develop and operate large-scale sites, and to meet the country’s needs.”
