Lhyfe, a global leader in the production of green and renewable hydrogen, has secured a €149 million grant from the French government to support the construction of its large-scale hydrogen production facility near the Grand Canal of Le Havre in Normandy.

This substantial public funding was formally confirmed through the French Prime Minister’s official signature. The grant supports Lhyfe’s Green Horizon project, which aims to produce up to 34 tonnes of green hydrogen per day using water electrolysis. This facility, expected to be operational by 2029, will be one of the first major sites for renewable hydrogen production in both France and Europe.

The Green Horizon initiative is a key part of Europe's broader hydrogen strategy and was selected by the European Commission in 2022 under the third wave of the Important Projects of Common European Interest (IPCEI) program, which supports transnational projects deemed strategic for the European Union. It was also included in France’s 2021 national call for hydrogen project proposals.

During a visit to Le Havre in March 2024, Roland Lescure, who was serving as Minister Delegate for Industry and Energy at the time, revealed the government’s decision to provide financial support. The funding arrangement, established through a deal with the French public investment bank Bpifrance, includes a phased release of funds. As part of this agreement, Lhyfe is expected to receive an initial advance of €18 million by June 2025. This payment will reimburse investments made since 2022 and help launch the upcoming stage of the project.

The remaining funds will be released in stages, contingent upon meeting annual milestones and providing justification for eligible expenses, up to the full €149 million over four years.

Located on a 2.8-hectare site in Gonfreville-l’Orcher, near the Yara industrial facility, the plant will support the region’s decarbonization goals by supplying green hydrogen for both industrial use and mobility solutions. Yara, which is also working to reduce its carbon emissions, has expressed support for Lhyfe’s project.

Lhyfe has already submitted applications for building permits and environmental authorizations. The company has also secured the necessary grid connections and power availability to proceed with construction.

This pioneering project is expected to play a crucial role in proving the technical and economic viability of green hydrogen production at scale. It complements direct electrification and contributes to reducing reliance on fossil fuels, aligning with emissions reduction targets outlined in the Paris Agreement and Europe’s decarbonization strategy. France has set an ambitious target of 4.5 gigawatts of installed electrolysis capacity by 2030.

As a strategic IPCEI project, Green Horizon is not only critical for France’s hydrogen ambitions but also for establishing Europe’s leadership in the green energy transition.