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Lhyfe lays the foundation stone of its largest green H2 production site in France

Lhyfe, one of the world’s pioneers in the production of green and renewable H2 for mobility and industry, is kicking off the large-scale production of green H2 in Auvergne-Rhône-Alpes. The aim is to produce green H2 locally, using renewable electricity and the electrolysis of water, to decarbonize mobility and industry in the region.

Lhyfe is officially starting construction of its green H2 production plant in Le Cheylas, at the former Ascométal steelworks waste storage site, on a 7,000 m2 plot of land. The project will contribute to the reindustrialization of this brownfield site, initiated by its current owner SLS Actiparc Sillon Alpin.

The site, which has been named Lhyfe Le Cheylas, was initially planned to have 5 MW of capacity producing up to 2 tpd, but instead, will have a production capacity of up to 4 tpd (i.e. an installed electrolysis capacity of 10 MW), right from its launch – planned early 2026 – to meet the demand of the particularly dynamic local market. This doubling of capacity will make it the largest Lhyfe site in France – the next largest are Bessières and Buléon, each with a capacity of 5 MW.

As a pure player and pioneer in green H2, Lhyfe produces its H2 by electrolysis of water and uses electricity from renewable sources supplied by national producers. The company has already installed four production sites, including three in France and one in Germany.

Decarbonizing mobility and industry in a pioneering region for green H2. The purpose of this green H2 is two-fold – decarbonizing heavy and intensive transport (particularly lorries, buses, etc.), and industry.

As France's leading industrial region in terms of employment, Auvergne-Rhône-Alpes is at the forefront of the deployment of H2 for mobility and industry in Europe. It launched its first projects in 2017, including the Zero Emission Valley (ZEV) project, supported by the Region and implemented by HYmpulsion, and IMAGHyNE (Investment to Maximize the Ambition for Green H2 iN Europe) in 2024. This latest project, in which Lhyfe is a direct partner with its production unit in Le Cheylas, aims to develop a large-scale renewable and low-carbon H2 economy in the Auvergne-Rhône-Alpes Region, fully integrated with the existing energy system and meeting the needs of high-emission sectors.

Lhyfe has signed a ten-year sales contract with HYmpulsion, giving priority to supplying HYmpulsion H2 stations in the Alps, with a volume of 600 tpy (i.e. around 1.6 tpd), over a total period of ten years. Six stations have already been inaugurated across the HYmpulsion network and seven others are currently under construction.

With a total production capacity of 4 tpd, Lhyfe will also be able to meet the significant needs of regional industry, replacing grey H2 and natural gas in particular, in sectors such as metallurgy, microelectronics, chemicals, etc.

With Le Cheylas, Lhyfe aims to contribute to the ambitious objectives of the Auvergne-Rhône-Alpes Region, which are promoting the development of clean mobility and low-carbon industry and improving air quality in the Alpine valleys.

A project supported by Europe through the Auvergne-Rhône-Alpes Region. The Lhyfe Le Cheylas site has received support from the Just Transition Fund, as part of the 2021-2027 European Regional Program implemented by the Auvergne-Rhône-Alpes Region, in close collaboration with the areas concerned. The contracted subsidies amount to €5.5 MM.

The project is also receiving financial support from the Clean H2 Partnership as part of the European large-scale H2 valley project IMAGHyNE, coordinated by the Region. The contracted subsidies here are for €750,000.

Thierry Kovacs, Vice-President of the Auvergne-Rhône-Alpes Region responsible for the Environment and Positive Ecology said, “Since 2017, under the impetus of President Laurent Wauquiez, the Region has invested in the H2 sector. The deployment of its regional strategy, adopted in 2020 and implemented today under the authority of President Fabrice Pannekoucke, has made Auvergne-Rhône-Alpes the pioneering region for H2. The Zero Emission Valley and IMAGHyNE projects are inspirations for the regions of France and Europe. European funding is an important lever for supporting this transition to a carbon-neutral economy. Over the 2021-2027 period, almost €77 MM in JTF funding will be devoted to this issue in the eligible areas of the Rhône and Isère departments. The region is using this fund to support the job-generating H2 industry. Lhyfe’s electrolyzer project is a fine example of this, and with the support of the Region and Europe, it can set up its largest green H2 production site, which is an essential link in the value chain in Auvergne-Rhône-Alpes.”

Thierry Raevel, Chairman of HYmpulsion and Director of Parliamentary Relations and Regions for ENGIE said, “Beyond the national challenges of energy supply security, H2 offers an answer to three challenges for our regions: decarbonizing light and heavy mobility, improving air quality in our valleys, and creating jobs locally. We are proud to establish this partnership with Lhyfe for the production of renewable H2. This project will enable us to supply the Hympulsion stations, supplementing the H2 produced by our 2 MW electrolyzer (around 800 kg H2/d).” 

Mathieu Janin, CEO SLS ACTIPARC said, “We are extremely proud to welcome Lhyfe, an innovative company and a pioneer in the production of green H2, to the SLS ACTIPARC site. Lhyfe’s installation in our park not only demonstrates our commitment to sustainable development, but also our desire to support cutting-edge energy transition projects. Green H2 is a solution of the future to the climate and energy challenges we face. Lhyfe's decision to locate here is recognition of the relevance of our infrastructure and our ability to support key players in tomorrow's industry. Together, we are helping to build a cleaner, more sustainable and more resilient industrial ecosystem. We salute their work and look forward to seeing the concrete results of this collaboration for a more environmentally-friendly form of energy. This partnership is an opportunity for the whole region to benefit from this dynamic and to pave the way for other green innovation projects.”