French green hydrogen pioneer Lhyfe has marked the start of construction of its largest green hydrogen production site in France with a foundation stone laying ceremony at the former Ascométal steelworks in Le Cheylas, in Auvergne-Rhône-Alpes.
The aim is to produce green hydrogen locally, using renewable electricity and water electrolysis, to decarbonize mobility and industry in the region.
The green hydrogen plant is being built 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.
We are extremely proud to welcome Lhyfe, an innovative company and a pioneer in the production of green hydrogen, to the SLS AActiparc Sillon Alpin. 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, said Mathieu Janin, CEO of SLS Actiparc Sillon Alpin.
Four tonnes per day capacity
The site, which has been named Lhyfe Le Cheylas, was initially planned to have 5 MW of capacity producing up to 2 tonnes per day.
Instead, it will have a production capacity of up to 4 tonnes per day and an installed electrolysis capacity of 10 MW, right from its launch – planned for 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 hydrogen, Lhyfe produces its hydrogen by electrolysis of water and uses electricity from renewable sources supplied by national producers.
The company has installed four production sites, including three in France and one in Germany.
We commend the clear-sighted, visionary, and determined nature of the Auvergne-Rhône-Alpes Region, which as early as 2017 wanted to develop the green hydrogen sector to decarbonize its mobility and industrial fabric, and which has subsequently provided unfailing and highly effective support to companies like ours. This support is now enabling us to start building our largest production site in France. The favourable development of the ecosystem has enabled us to save time by installing the enhanced version of our site straight away. We will now be meeting the region’s many industrial operators to discuss their needs, said Matthieu Guesné, Founder and CEO of Lhyfe.
Decarbonizing mobility and industry
The purpose of this green hydrogen is two-fold – decarbonizing heavy-duty vehicles (HDVs), and industry.
As France’s leading industrial region in terms of employment, Auvergne-Rhône-Alpes is at the forefront of the deployment of hydrogen 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 Investment to Maximise the Ambition for Green Hydrogen iN Europe (IMAGHyNE) in 2024.
Beyond the national challenges of energy supply security, hydrogen 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 hydrogen. This project will enable us to supply the Hympulsion stations, supplementing the hydrogen produced by our 2 MW electrolyzer (around 800 kg hydrogen/day), said Thierry Raevel, Chairman of HYmpulsion and Director of Parliamentary Relations and Regions for ENGIE:
Long-term offtake agreement
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 hydrogen 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 hydrogen stations in the Alps, with a volume of 600 tonnes per year (i.e. around 1.6 tonnes a day), 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 tonnes per day, Lhyfe will also be able to meet the significant needs of regional industry, replacing grey hydrogen and natural gas in particular, in sectors such as metallurgy, microelectronics, and chemicals.
With Le Cheylas, Lhyfe aims to contribute to the ambitious objectives of the Auvergne-Rhône-Alpes Region by promoting the development of clean mobility and low-carbon industry and improving air quality in the Alpine valleys.
Green hydrogen is a solution of the future to the climate and energy challenges we face. Lhyfe’s decision to locate here is a 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, said Mathieu Janin.
European support through the Auvergne-Rhône-Alpes Region
The Lhyfe Le Cheylas site has received support from the Just Transition Fund (JTF), as part of the 2021-2027 European Regional Programme implemented by the Auvergne-Rhône-Alpes Region, in close collaboration with the areas concerned.
The contracted subsidies amount to EUR 5.5 million.
The project is also receiving financial support from the Clean Hydrogen Partnership as part of the European large-scale hydrogen valley project IMAGHyNE, coordinated by the Region.
The contracted subsidies here are for EUR 0.75 million.
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 hydrogen. 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 EUR 77 million 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 hydrogen 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 hydrogen production site, which is an essential link in the value chain in Auvergne-Rhône-Alpes, ended Thierry Kovacs, VP of the Auvergne-Rhône-Alpes Region responsible for the Environment and Positive Ecology.
