Green hydrogen
Lhyfe announces progress in green hydrogen projects
Hydrogen producer, Lhyfe, from the city of Nantes, France, started the first production facility into operation in Oct. 2021. Today, the company offers renewable energy solutions, bio-gas, smart grids, and batteries.
Matthieu Guesné, Chairman and CEO, Lhyfe, talked about their achievements during FY 2023. The FY 2023 revenues were at €1.3 million, which is x2, as compared to FY 2022. Lhyfe had the signature of multiple new clients in France and Germany, including Avia, Manitou, Iveco, John Deer, Hypion, Hype, Symbio, Bretetche Hydrogen, etc.
New sites
Two new sites were inaugurated in France (Buléon and Bessières), making Lhyfe the first producer of renewable hydrogen in the country. Eight other sites are currently in construction or extension, mainly in France and Germany, more than any other player in the sector in Europe. We have continued innovation with the world’s first offshore green hydrogen production.
Lhyfe is also boosting the scale-up, with €149m grant from the French government for 100 MW project near Le Havre in France. It has strengthened financing strategy, with a €28m first green corporate syndicated loan, and increase in secured grants at c230 million, as of December 2023.
Bouin, France site is now running at full speed. Factory was completed in 2021, and it is now fully booked. Extension is planned for up to 1 ton of green hydrogen/day. This is representing 2.5MW electrolysis installed capacity after extension. The onsite storage capacity will be extended from 700 kg to 5 tonnes. It is scheduled by end of FY 2024.
This is Lhyfe’s first green hydrogen production site with a current production capacity of up to 300 kg of green hydrogen/day (installed capacity of 0.75 MW). It has direct connection to wind farm, and has secured PPA with Vendée Energie. It is serving mobility clients. Lhyfe has 100 percent success rate in deliveries.
Providing site update on Buléon (France), he said it is located in Brittany (Morbihan, Buléon near Lorient). Site has production capacity up to 2 tonnes of green hydrogen per day (5 MW installed capacity). Lhyfe is addressing mobility (70 percent) and bulk industry (30 percent). Main source of energy is wind PPA with VSB énergies Nouvelles. Client has already been signed. Another site was installed as of end 2023. Commercial ramp-up will start by end of H1-2024.
Bessières (France) site update was next. It is located in Occitany (Bessières near Toulouse Occitany). Production capacity is up to 2 tonnes of green hydrogen per day (5 MW installed capacity). Main source of energy is wind PPA. It is also winner of the Corridor Hydrogen tender for projects. This plant is under commissioning. Commercial ramp-up will start by end of H1-2024.
Lhyfe has several sites under construction in Germany. Tübingen, Germany has up to 200 kg per day (1 MW installed capacity). It is aimed at supplying hydrogen-powered trains on the Pforzheim-Horb-Tübingen line from 2024. Lhyfe signed contract with Deusche Bahn. Unit has been installed and ready for client’s start of operations.
Schwäbisch Gmünd, Germany has up to 4 tpd (10 MW installed capacity). It is mostly used for mobility. Construction works was launched at the end 2023. Brake, Germany, has up to 4 tpd (10 MW installed capacity. Site construction had started at end of 2023. It is 100 percent used for bulk.
Sites under construction in France include those in Croixrault and Sorigny. Croixrault has up to 2 tonnes of green hydrogen per day (5 MW of installed electrolysis capacity). It is located on the Mine d’Or industrial area, alongside the A29 motorway. It is the first production unit in the Hauts-de-France region to make renewable hydrogen available to a wide market. It will supply local uses in mobility and industry. Civil works had started early 2024.
Sorigny has up to 2 tonnes of green hydrogen per day (5 MW of installed electrolysis capacity). It is part of Hy’Touraine project. Green hydrogen will be supplied for uses in mobility and industry, with many local authorities and businesses already identified as having hydrogen needs in the area. Civil works started early 2024. In total, Lhyfe will have 10 plants. We are also developing in Spain.
Lhyfe has Fortress pipeline, excluding projects already under construction. Bulk projects are in Wallsend (UK) – 20 MW, HOPE Project (Belgium) – 10 MW, Bussy St-Georges (France) – 5 MW, Vallmoll (Spain) – 15 MW, Duisburg (Germany) – 20 MW, Milan (Italy) – 5 MW, and Le Cheylas (France) – 5 MW.
Onsite projects are in Gonfreville l’Orcher (France) – 100 MW, Nantes Saint-Nazaire Port (France) – 210 MW, Fonderies du Poitou (France) – 100 MW, Epinal (France) – 70 MW, SouthH2Port (Sweden) – 600 MW, Delfzijl (Netherlands) – 200 MW, etc. Backbone projects are in Aaland Island (Finland) – X GW, Lubmin (Germany) – 800 MW, and Perl (Germany) – 70 MW.
Lhyfe has secured €149m grant from French government to support 100 MW project near Le Havre in France. 28,000 m2 available space at the planned site of Gonfreville-l’Orcher. It will produce 100 MW. This confirms Lhyfe’s ability to raise significant subsidies and de-risk large projects. It confirms as well the status as a key player in the renewable hydrogen industry, and know-how and expertise of Lhyfe teams, pioneers in the industry.
The project has been approved by the European Commission as part of the third wave of IPCEI (Important Projects of Common European Interest) on hydrogen.
Offshore hydrogen production
Lhyfe is also paving the way for offshore hydrogen production. SEALHYFE pilot is a unique set of data for a concrete step forward in hydrogen offshore development. It is the first offshore hydrogen production unit in the world in 2022. It is producing green hydrogen offshore in the Atlantic Ocean during pilot period from May-Nov. 2023.
Green hydrogen was produced under stressed conditions (corrosion, direct connexion to wind mill, strong accelerations, fully remote operations). Millions of data was collected to support next phase (HOPE project). Reliability of hydrogen offshore production in an isolated environment, and management of the platform’s movements were undertaken. There was validation of production software and algorithms. It was decommissioned end-Nov. 2023.
HOPE or Hydrogen Offshore Production for Europe, was for the first time in the world. Green hydrogen will be produced at sea, and delivered ashore via
a composite pipeline to local customers for use in industry and transport sectors.
Up to 4 tpd of green hydrogen and 10 MW installed capacity. It is located in the North Sea, off the port of Ostend. Operations are expected early 2026. €33m grants awarded, o/w €20m from EU and €13m from Belgian government. This project is coordinated by Lhyfe, and implemented together with eight European partners.
Aland Island, off west coast of Finland, is an autonomous, demilitarized, Swedish-speaking region of Finland. Lhyfe has project to develop large-scale hydrogen production on Åland, integrated with gigawatt scale offshore wind in Åland waters. It is for use on Åland and in the wider European region. Lhyfe has signed MoU with CIP, the world’s largest dedicated fund manager within the greenfield renewable energy investments, and a global leader in offshore wind, green hydrogen.
Lhyfe is well positioned to answer future offshore bids to be launched in Europe from 2024 onward. Another 80 actions will be implemented over the coming years to address the Group’s ESG strategic orientations. Over 80 tonnes green hydrogen has been produced and sold to date.
Low-carbon hydrogen growth rising, but needs policy support
Global demand for low-carbon hydrogen is predicted to rise steadily, although, it accounted for less than 1 percent of the total hydrogen production in 2022 (IEA). Demand increases are estimated to reach 150 Mt by 2030 and 520 Mt in 2050. A lot will depend on the policy environment and other factors, according to a study by Cleantech Group. An estimated $80 – $300 billion will be required to build a global low-carbon hydrogen economy by 2030.
Produced with at least 80 percent lower emissions than fossil fuels, low-carbon hydrogen costs up to three times more than alternatives. Robust policy support, including direct financial incentives, can help it become competitive. Low-carbon hydrogen could gain a 14 percent share of global energy demand by 2050, according to the IEA.
Green H2 energy intensive
Selene Law, Senior Associate Energy & Power at Cleantech Group, said green hydrogen production is energy intensive. She said: “The bonds between hydrogen and oxygen in the water molecule are pretty strong, and so take a lot of energy to break down, compared to a methane molecule, for example. The energy intensity for alkaline electrolysis is in the range of 50 to 60 kilowatt-hours (kWh) per kilogram of hydrogen (kWh/kg H2), 40 to 50 kWh/kg H2 for PEM, and 35 to 45 kWh/kg for SOEC. Methane pyrolysis — 50 to 70 kWh/kg H₂, but advanced pyrolysis could be as low as 30 to 50 kWh/kg H₂.”
When will there be additional renewable capability, new infrastructure, and a better supply chain? These are issues dogging supply chain. According to Law, this depends on the geography. The USA, with IRA, will, no doubt, incentivize build-out of more solar and wind.
Countries in Europe will also have legislation that encourages more investment into new renewable generation. Companies, like Johnson Matthey, are recycling iridium. However, iridium is a key element in PEM electrolyzers, and it is still very rare. So, innovators are looking to cut down on the use of iridium. When it comes to the value chain, the midstream is still very much a missing piece. Currently, the only way to cost competitively transport hydrogen over long distances is by converting it into ammonia.
Low-carbon hydrogen costs more. What is being done to keep that down? Law said that the key ways to keep the costs down is by financial incentives, such as the IRA tax credits and carbon price, which makes low-carbon hydrogen more competitive compared to fossil fuels equivalents.
There has been convoluted support procedures in the EU, uncertainty around hydrogen regulation in the US, and an insufficient number of hydrogen purchase agreements (HSAs) lead to delays in investment decisions. What is being done in Europe to improve the hydrogen purchase agreements (HSAs)? Law stated that not specifically for HSAs, but the EU has launched a Hydrogen Bank, which contracts for hydrogen volumes that producers can bid for.
Startups working
Startups are also doing great work across the world. Law said that using seawater (sHYP), typically electrolyzers have very high purity requirements for feed-water, so the ability to use seawater will help make the process more efficient and will appeal for manufacturers/project developers who potentially have a lot of offshore wind in their portfolio.
UK-based Oort Energy is developing technology that reduces hydrogen crossover into the oxygen loop, increasing safety, while improving the performance of the membrane. Electric Hydrogen, from the US, is trying to gain an edge with a vertically-integrated business model, driving costs down across the value chain.
H2 in many colors!
Finally, there are emerging rainbow options. Hydrogen occurs in many forms, with each offering varied options and challenges. Naturally-occurring hydrogen — dubbed ‘gold’, when found underground, and ‘white’ when identified in depleted oil wells — could be among the cheapest at less than $1/kilogram.
‘Turquoise’ hydrogen, produced by methane pyrolysis, has the potential to be carbon negative, and offers carbon black as a byproduct. Green hydrogen, produced with renewable energy, is growing fast, but poses challenges to scale up. Companies with nuclear assets have the opportunity to produce ‘pink’ hydrogen using electrolysis, and ‘purple’ hydrogen with thermolysis.
Measuring Scope 3 carbon emissions with digital twin
Digital Twin Consortium (DTC) recently organized a seminar on measuring Scope 3 carbon emissions with digital twin.
A digital twin is a virtual representation of real-world entities and processes, synchronized at a specific frequency and fidelity. Digital twin systems transform businesses by accelerating holistic understanding, optimal decision-making, and effective action. Digital twins are motivated by outcomes, tailored to use cases, powered by integration built on data, guided by domain knowledge, and implemented in IT/OT systems
Erich Barnstadt, Marketing Control Board Member, OPC Foundation, said we need resilient manufacturing supply chains. We need to be able to digitally provide asset data cross-platform, and combat climate change in the process.
For this to happen, the supplier needs to verify component / raw materials are within spec. It also needs to report carbon footprint and hazards of materials provided. The manufacturer needs to digitally verify data from supplier on-the-fly. It needs to calculate carbon footprint of product manufactured. It also needs to report the carbon emitted during manufacturing process to the government.
Let us try and understand carbon, and direct and indirect emissions. Scope 1 has direct emissions that result from direct emissions through the use of fossil fuels in transport, processes, or heating. Scope 2 has indirect emissions that result from production of electricity used by the company. However, Scope 3 results from supply chain emissions. It involves emissions from everything, else including purchased services or products, lifecycle of sold products, etc.
Looking at the share of scope 3 emissions in manufacturing, they account for 87 percent of all emissions, with scope 1 and 2 accounting for the remaining 13 percent. Top contributors to scope 3 emissions include purchased goods at 43 percent, use of sold goods at 33 percent, upstream and downstream transport at 4 percent, each, capital goods at 4 percent, and others at 3 percent.
We need to have an asset administration shell (AAS). It is a vendor-neutral asset data sharing service. It’s a shell (container), and cross-platform, and covers the full lifecycle of the asset. It contains OPC UA info model. Microsoft is one of the authors. There is open-source implementation. HTTP REST interface is developed by SPS’22, and uses OpenOfficeXml format.
IEC 62541 is an industrial interoperability standard from OPC UA. For interoperability, it is vendor, protocol, platform and OS independent. Open Source is available on GitHub (>4.5 million source lines are contributed by Microsoft. It is scalable from sensor to cloud, and has services-oriented architecture (SOA). It is owned by a non-profit OPC Foundation. The standard has 70 million+ installed base and exponentially growing.
CESMII is Smart Manufacturing Institute. CESMII SM Profile Designer includes machine builders, system integrators, and any domain expert. It also has the CESMII SM Marketplace, CESMII SM Innovation Platform, and other smart cloud infrastructure and platforms.
An example from CESMII was demonstrated. This demonstrator interprets training unit components as part of a larger system, and applies the Carbon Reporting Information Model to each unit, and to the machine. The common Information Model for Carbon Reporting allows consistent and accurate reports to be generated at any level of the enterprise, for any asset that implements this information interface.
It is imperative that we have a much better understanding of the Scope 3 emissions, and work together.
Lhyfe producing green hydrogen for life from seawater
Hydrogen producer, Lhyfe from the city of Nantes, France, has started the first production facility into operation.
Matthieu Guesné, founder and CEO, Lhyfe, said it was expensive to buy huge quantities hydrogen. Wonderful technologies were coming on to the market, such as Hyundai car with grey hydrogen. Once you have driven this, you would always want to drive a hydrogen car. However, grey hydrogen emissions can be worse than newest diesel engine. There is a need to develop scalable, ecological, green hydrogen.
Lhyfe was created in 2017 to make that possible. The plant was inaugurated on October 1, 2021. The electrolyzer is connected to three windmills. Lhyfe is using three out of eight windmills from the wind farm. These windmills are producing enough power for the electrolyzer. It will do the electrolysis of water. Water is obtained from sea.
The first Lhyfe plant is on the Atlantic coast of France. It gets seawater from the harbor. Water is purified, and electrolyzed. Lhyfe split liquid molecule of the water into two gases — hydrogen and oxygen. It produces one kg of hydrogen and eight kg of oxygen. Hydrogen is purified to be compatible with hydrogen cars. You need high grade, high-quality hydrogen, else, you can pollute. Hydrogen is compressed under high pressure of around 350 bars. Hydrogen is then put on trailers, and pulled by trucks for delivery to customers. Customers are using hydrogen in garbage trucks, cars, etc.
Lhyfe sells 300kg of hydrogen per day. Lhyfe has signed many agreements, which needs them to increase the production of hydrogen. It is very important to have direct connection with the windmill, and connected to the electrical grid of a country, say, France, UK, or Germany. The level of green differs across countries. You can also have green electricity to produce hydrogen. You also don’t have to go through the grid, so, you don’t have grid feed. It makes electricity cheaper. Lhyfe makes hydrogen to make it more sustainable and economical. The motto is to make green hydrogen cheaper and made available everywhere. Lhyfe does the assessment for the right power, via locations. The challenge is to make this available all over the world.
Lhyfe installed a smart software layer to and forsee and forecast all layers of electricity pollution, and manage the storage. It currently has 60 projects running all over Europe. It has one tonne (1,000kg) per day production goal for 2022. It is near a city of 50,000 inhabitants. With lot of plants across countries, they have reached capacity of 10 tons per day. The population is half a million at Nantes. 10 tons of hydrogen can supply all the buses and refuse trucks in the city. Lhyfe is working on mobility for some sites, and for the industry in other sites, such as chemicals and steel. Lhyfe is building production sites in Denmark, Germany, Italy, etc.
For Denmark, Lhyfe was selected by the European Commission to produce hydrogen in large scale. Now, it is switching the model from an industrial scale to a national scale. It will ramp up production from 12MW to 124MW next year. Hydrogen is used extensively in chemical compounds. You have to change the origin of hydrogen from fossil fuel to hydrogen from water and wind. It has Euro 35 million grant from Europe. To develop green hydrogen for all chemical, steel, and heavy-duty industries, Lhyfe needs lot of hydrogen. It is going to produce hydrogen using offshore platforms. Electrolysers will be installed on the offshore platforms. They will be connected to windmills to bring back energy to the shores. It will be delivered to industries and utilities.
Next year, Lhyfe is going to have in France, 20km from the shore, a floating windmill connected to an electrolyzer. Then, it will develop large production centers offshore. Sea absorbs lot of CO2. Seas and oceans are very important for Lhyfe. However, oceans are also getting more acidic and depleted. Lhyfe wants to give back capability to the ocean to absorb CO2 and grow life. Lhyfe had an A series in July 2021 for Euro 50 million. One investor happens to be Swen Capital Partners, France. Lhyfe has put its project at Euro 20 million.
Offshore hydrogen production facility
The world’s first offshore hydrogen production facility, developed by Lhyfe and powered by electricity from a floating wind turbine, will be operational in 2022, off the coast of Le Croisic, at SEM-REV, Centrale Nantes’ offshore test site. Lhyfe and Centrale Nantes share an ambitious goal to make offshore renewable hydrogen a reality, and demonstrated the reliability of an offshore electrolyser.
The electrolyser in Bouin on the French Atlantic coast is directly connected to a wind farm and can produce 300kg of green hydrogen per day. Purified seawater serves as the raw material. The world’s first offshore hydrogen production site, set up by Lhyfe in collaboration with Chantiers de l’Atlantique, will be operational on SEM-REV site, from 2022.
The offshore test site meets all the criteria (MRE presence, harsh environmental conditions) to validate offshore hydrogen production technology, before moving towards large-scale industrial deployment in 2024. This project is supported by the Pays de la Loire Region, the Sea innovation cluster Pôle Mer Bretagne Atlantique, and the Maritime Industry’s Strategic Committee.
Lhyfe is already proving in Bouin, the first site in Europe directly connected to onshore wind turbines to produce its first kilograms. It has an R&D site for offshore hydrogen production. Production of hydrogen from seawater and directly connected to wind turbines was tested and validated from July 2021.
Lhyfe and the Chantiers de l’Atlantique have been working closely since 2020 on the detailed design of an offshore hydrogen production platform that can be built in Saint Nazaire, ranging from 10MW to several hundred MW. The aim is to deploy these concepts as early as 2024.
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