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Lhyfe and Exogen partner to scale up green H2 production for heating applications

Lhyfe and Exogen Hydrogen Solutions (Exogen) have signed a Memorandum of Understanding for the combined offering of comprehensive decarbonization solutions for industrial steam, district heating and mobility applications powered by green H2. This partnership paves the way for a new type of ecosystem and vast markets for green and renewable H2.

The partnership includes a commercial agreement to identify potential customers across Europe. Both organizations will promote their respective products and services to the benefit of clients seeking to unlock operating synergies from integrated decarbonization solutions. There is growing demand by multinationals and industrial clusters targeting operating synergies from combining thermal and mobility solutions powered by green H2. The mobility applications are aimed at H2 refilling stations for forklifts, vans, delivery trucks and cars. Thermal solutions include industrial steam, large buildings and district heating applications.

Steam production is a core component of many industrial processes with a highly valuable, continuous demand profile. Industries with a large process steam demand include pulp and paper, food and beverages, pharmaceuticals, industrial chemicals and the oil and gas industry. Large buildings thermal applications include airports, hospitals, commercial centers and campus heating facilities.

Exogen offers a pioneering H2 steam plant, the HSP 3000, featuring boiler technology by Jericho Energy Ventures. This breakthrough, zero-emissions steam plant for industrial and district heating applications is a turn-key solution. The H2-powered installation is produced and serviced by industry leader Sofinter Group, and comes pre-assembled in container-sized units, shipped by road transport. It has no smokestack and eliminates all NOx and CO2 emissions from industrial steam and district heating.

The only exhaust is clean water, which is ready for circular use with Lhyfe’s green H2 production system, further enhancing the positive environmental impact. Indeed, Lhyfe—as one of the world’s pioneers in the production of green and renewable H2—uses water and renewable energies to produce its H2 via water electrolysis.

Because of its base-load H2 demand profile, the Exogen HSP 3000 has become a key enabler for other H2 applications. Once green H2 becomes available onsite and in industrial quantities, other applications, such as mobility, transport and logistics, become natural extensions to further decarbonize the value chain. As a result, the combined applications can unlock material operating synergies and cost advantages thanks to scale effects.

This is where the leading expertise of Lhyfe comes in. Lhyfe inaugurated its first green H2 production site in 2021.  With five additional sites under construction throughout Europe, it aims to achieve 55 MW of installed capacity of H2 production by end 2024, 200 MW by end 2026 and more than 3 GW by end 2030. Through its production sites and its portfolio of projects, Lhyfe intends to provide access to green and renewable H2 in industrial quantities to significantly decarbonize sectors such as transport and industry (e.g., chemicals, steel, glass).

First, the partnership with Exogen can lead to significant capacity growth for the existing pipeline of projects at Lhyfe, servicing a large new end-market in industrial steam. Second, with district heating and process steam, Lhyfe is entering into two entirely new market segments, which are expected to lead to additional growth opportunities in green H2 production.

Philippe Desorme, VP of Sales & Business Development at Lhyfe, said, “Green H2 has become highly relevant for decarbonizing industrial steam, district heating and logistics. By partnering with Exogen we expect a significant expansion of our green H2 production output over time, while also opening a completely new market segment for us. Therefore, we are very excited to work with Exogen and our clients to help unlock operating synergies and address new H2 demand.”

Saverio Costanzo, CRO at Exogen, said, “Decarbonizing heat is the single biggest challenge in energy markets. The Exogen H2 steam plant is a great solution for many businesses because it will permanently eliminate CO2 and NOx emissions from their incumbent production process. As a result, our clients can deliver meaningfully decarbonized products and services to their customers, unlocking new growth opportunities. In our mission to decarbonize energy applications, Lhyfe is an ideal partner; together we can serve customers across Europe with comprehensive solutions. I am very excited about the early feedback from multinationals and district heating providers for our combined offering. The future of energy applications is green, and we are right in the middle of it.”