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Lhyfe and EDP renewables sign corporate PPA

Published by , Editorial Assistant
Energy Global,


Lhyfe, a leader in green and renewable hydrogen production, and EDP Renewables, a company specialising in the development of renewable energy, are announcing the signing of a 15-year renewable electricity supply contract or corporate power purchase agreement (PPA).

Lhyfe and EDP renewables sign corporate PPA

Under this 15-year PPA, Lhyfe will buy renewable energy generated by a 39 MWac (55 MWp) solar project in Germany developed by EDP Renewables, through Kronos Solar EDPR, that is expected to be connected to the grid during 2025.

This PPA is the first materialisation of the industrial agreement between the two companies, in which it was agreed that EDPR will supply renewable electricity to Lhyfe's hydrogen generation projects and both companies will identify opportunities for the co-development of projects to decarbonise challenging sectors where electrification is not feasible.

For Lhyfe, this PPA is its largest to date and secures the renewable power supply for its future green hydrogen production sites in Germany, thus consolidating its sustained growth. In Baden-Württemberg and in Lower Saxony, Lhyfe is building two production units representing a maximum total production capacity of 8 tpd of green and renewable hydrogen, which will be supplied locally for uses related to mobility and industrial processes. This CPPA allows Lhyfe to further reinforce its European network of renewable electricity supplier partners, following the signing of two other PPAs in 2023, while guaranteeing competitive sales conditions for renewable hydrogen in the long-term.

For EDP Renewables, this deal is a milestone as it is the first long-term corporate contract for renewable energy supply signed in Germany since its expansion and also the first PPA signed with a hydrogen company. This PPA reflects its success in securing new PPAs and reinforces its low-risk profile and growth strategy based on the development of competitive projects with long-term visibility, fostering the acceleration of the energy transition and the decarbonization of the economy. By signing another long-term contract with a major client, EDPR reaffirms its strong PPA activity with utilities and big companies, and nowadays has more than 55% of the 2023-2026 additions already secured.

EDPR entered Germany in 2022 through the acquisition of Kronos Solar EDPR and currently has a pipeline of over 8 GWp in different stages of development in solar utility scale, including agri-photovoltaic (PV) projects. Although EDPR’s business in Germany is focused on solar technology, the company has the ambition of developing wind projects in the country by the end of the decade.

“Signing this long-term agreement with Lhyfe is an important opportunity for EDPR as it reinforces our commitment to ramp up the penetration of renewable energy in Europe, especially in a market that has the ambition to achieve significant PV targets by the end of this decade. We are happy to be able, through Kronos Solar EDPR, to contribute to these goals by partnering with Lhyfe, whose activity complements our aim of reducing carbon dioxide (CO2) emissions”, highlghted Duarte Bello, Chief Operating Officer for Europe at EDP Renewables.

“Thanks to this agreement, we are securing in a local and long-term manner our renewable electricity supply. Almost the entire output of the EDPR PV solar plant will be used to power our green and renewable hydrogen production sites contributing to the decarbonisation of mobility and industry which currently use fossil fuels or carbon-derived hydrogen. We also keep strengthening our strategic relation with EDPR, with whom we are extremely happy to jointly collaborate in the hydrogen industry", said Matthieu Guesné, CEO and founder of Lhyfe.

 

 

For more news and technical articles from the global renewable industry, read the latest issue of Energy Global magazine.

Energy Global's Winter 2023 issue

The Winter 2023 issue of Energy Global hosts an array of technical articles weather analysis, geothermal solutions, energy storage technology, and more. This issue also features a regional report looking at the future of renewables in North America, and a report from Théodore Reed-Martin, Editorial Assistant, Energy Global, on how Iceland utilises its unique geology for renewable energy.

Read the article online at: https://www.energyglobal.com/other-renewables/25012024/lhyfe-and-edp-renewables-sign-corporate-ppa/

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