On October 18, 2024, Lhyfe (EURONEXT: LHYFE), a pioneer in green and renewable hydrogen production, began large-scale green hydrogen production in the Auvergne-Rhône-Alpes region, France. The project is part of the company's broader mission to decarbonize both mobility and industry by producing green hydrogen locally, utilizing renewable electricity and water electrolysis.

Lhyfe's new plant, located in Le Cheylas at the former Ascométal steelworks site, will be constructed on a 7,000 m² plot of land and contribute to the reindustrialization of the brownfield site. Originally planned with a production capacity of 2 tons per day, the plant will now launch in early 2026 with an increased capacity of 4 tons per day, powered by a 10 MW electrolyser. This upgrade makes Lhyfe’s Le Cheylas facility the largest green hydrogen production site in France, surpassing the company's other plants, such as Bessières and Buléon, which each have a capacity of 5 MW.

Lhyfe's hydrogen is produced via the electrolysis of water, using renewable electricity supplied by national producers. The green hydrogen produced will serve two primary purposes: decarbonizing heavy transport, such as trucks and buses, and supporting local industries like metallurgy, microelectronics, and chemicals by replacing gray hydrogen and natural gas.

The region has been a leader in hydrogen development since 2017, driven by projects such as the Zero Emission Valley (ZEV), supported by the Auvergne-Rhône-Alpes Region, and the IMAGHyNE initiative in 2024. The IMAGHyNE project, in which Lhyfe is a key partner, aims to create a large-scale renewable and low-carbon hydrogen economy, integrated into the region's energy system to meet the needs of high-emission sectors.

To support the region's transition, Lhyfe signed a 10-year sales contract with HYmpulsion, securing priority to supply 600 tons of hydrogen annually to HYmpulsion’s hydrogen stations in the Alps, which are part of a growing network. With six stations already operational and seven more under construction, this partnership is crucial for meeting regional demands.

Financial backing for the project comes from the Just Transition Fund, providing €5.5 million, and the Clean Hydrogen Partnership, offering €0.75 million in support for the IMAGHyNE project. The project is seen as a key part of the Auvergne-Rhône-Alpes Region's strategy to promote clean mobility and low-carbon industry.

Thierry Kovacs, Vice-President of the Auvergne-Rhône-Alpes Region, highlighted the region’s leadership in the hydrogen sector, while HYmpulsion Chairman Thierry Raevel emphasized the local benefits of green hydrogen, including job creation and improved air quality. Lhyfe CEO Matthieu Guesné praised the region's early commitment to green hydrogen, enabling the rapid development of the company's largest French site.