Lhyfe awarded €14m grant for Spanish hydrogen project

Lhyfe, a producer of renewable green hydrogen for transportation and industrial applications, has been awarded a grant of up to €14 million ($15.2 million) from H2 Pioneros for the development of a green hydrogen plant in Spain.

The plant has a production capacity of up to 5 t/day and will be Lhyfe’s first green hydrogen production site in Spain. The plant will be located in an industrial area in Vallmoll and will address demand for green hydrogen from different industrial companies in the area.

Potential clients include companies active in chemical and other industrial sectors which aim at replacing fossil fuels like grey hydrogen and natural gas that are currently used in their production process with green hydrogen, as well as transport or logistics companies looking to replace their fleet with less polluting vehicles like hydrogen-powered electric vehicles.

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Lhyfe’s project is one of only 14 across Spain in 2023 that were awarded grant financing through H2 Pioneros.

The grant, which will fund the design phases, the supply of equipment and the construction work, represents about half of the total estimated investment in the project, with first kilos of green hydrogen to be produced in 2026.

Taia Kronborg, chief business officer at Lhyfe said, “We are very happy to have been awarded this grant, which we see as a clear reward of our efforts and as the recognition of our expertise in the production and delivery of green hydrogen to multiple customers over the last two years. It is also a proof of us going the right direction in Spain, and we would like to reiterate our commitment to the Spanish hydrogen strategy and welcome the fact that Spain is focusing on the rapid expansion of a hydrogen infrastructure based on renewable energies."

Kronberg added, "This project will make a significant contribution towards providing competitive green hydrogen for many industrial and transport companies in the province of Tarragona. It will support our objective to increase the penetration of green hydrogen throughout Spain in other similar industrial processes."

The project’s implementation is subject to the granting of operating authorisations and construction permits, as well as financial investment decisions.