Skip to main content

News

Lhyfe, Energy Pool to use the flexibility of renewable green H2 production to support grid stability

The renewable green H2 industry is taking a decisive step forward by becoming actively involved in balancing the French power grid. Lhyfe, in partnership with Energy Pool, is spearheading this strategic advance.

Lhyfe, one of the world’s pioneers in the production of green and renewable H2 for mobility and industry, is now one of the players contributing to French grid stability, in particular by offering a demand response service and selling on the secondary reserve market, made possible by the flexibility of its production sites. These balancing services, which had not yet been provided by a H2 producer, will help to enhance grid efficiency, facilitate the integration of renewables and reduce the ecological impact and cost of Lhyfe’s energy consumption, while confirming the potential of renewable green H2 as an essential lever of energy transition.

Demand response is a mechanism that helps to shed part of the electricity demand during periods of high demand on the grid, by encouraging certain users (individuals, businesses or industry) to temporarily reduce their power use. The aim is to reduce the load on the grid to avoid power cuts or supply problems, particularly during peak use periods such as winter or heatwaves, so as to avoid having to start up highly polluting back-up power stations. The grid operator pays participating users who choose to voluntarily reduce their electricity consumption. Demand response is therefore a low-carbon solution that benefits the environment and the stability of the grid.

Aware of the potential of its business in this area, Lhyfe has decided to join forces with Energy Pool, in order to leverage the flexibilities of some of its French production sites, for a period of five years starting in 2025. This collaboration covers in particular the sites of Buléon, Bessières and Le Cheylas, with a combined capacity of 30 MW. This partnership is an important milestone for Lhyfe, which is constantly seeking to optimize its power consumption for two reasons: to contribute to energy transition by stabilizing the grid, and to reduce the cost of its energy consumption, in order to have a favorable impact on the price of green H2.

From early 2025, Energy Pool will initiate demand response events for Lhyfe on the wholesale markets (NEBEF), then paving the way to value creation on the secondary reserve market, a mechanism requiring high responsiveness from producers, which Lhyfe will be in a position to provide. Thanks to the flexibility inherent in the electrolyzers it has chosen to use, Lhyfe will be able to respond instantly to signals from the grid, offering a valuable service to the French grid operator.

This initiative is part of a wider drive to transform the H2 industry, which is now positioned as a pillar of energy transition. By integrating grid balancing into its business model, Lhyfe is contributing to grid stability while exploring additional cost cutting avenues.

By placing flexibility at the heart of its strategy, Lhyfe and its partner Energy Pool are showing the optimal integration of renewables, while meeting the growing challenges of managing tomorrow's energy resources. This alliance reflects a long-term vision, focused on a solid and resilient energy transition.