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    Lhyfe and Capital Energy sign hydrogen deal

    Lhyfe and Capital Energy have entered into a partnership agreement to collaboratively develop offshore renewable hydrogen projects in Spain and Portugal.


    The agreement entails the establishment of hydrogen production facilities at selected offshore wind farm sites currently being developed by Capital Energy. The Spanish energy company already has a significant pipeline of over 7.5GW in both countries.


    By combining efforts, the joint deployment of offshore wind farms and hydrogen production sites will benefit from economies of scale and the increasing synergy between industrial projects. This will require a larger number and variety of suppliers and specialists, resulting in social benefits as well.


    These initiatives will also enhance the overall energy system by enabling better control of the wind energy generated in these farms, thus reducing the need for curtailments. In cases where the grid is congested, power can be redirected from the grid to the hydrogen production unit, utilizing some of the wind turbines directly connected to it.


    Furthermore, the collaboration agreement between Capital Energy and Lhyfe has the potential to expand to other markets in the future.


    Lhyfe holds a unique position as the only company worldwide with a functioning prototype for offshore green hydrogen production, known as Sealhyfe, which was inaugurated in France in September 2022.


    The company aims to achieve a green hydrogen production capacity of 200MW by the end of 2026 and 3GW by the end of 2030. With ongoing projects in 11 countries, Lhyfe currently employs over 149 staff members dedicated solely to renewable hydrogen production.


    Pablo Alcón, Offshore director at Capital Energy, said “We have been committed with developing green hydrogen projects on the Iberian Peninsula for the past years and it was time to take the step into offshore, so we have joined forces with the best possible partner, Lhyfe, which has substantial experience in offshore hydrogen production.”


    “Through this alliance, we intend to use some of the energy generated by our offshore wind farms to produce hydrogen, which will help to drive the energy transition in a balanced way and solve potential bottlenecks in the electricity system.”


    “It will also increase the socio-economic benefits of our offshore projects, with greater investment and more skilled jobs.”


    Taia Kronborg, Chief business officer at Lhyfe, said “This agreement with Capital Energy is a tremendous opportunity to foster the transition to clean energy through the large-scale production of green hydrogen at sea.”


    “Producing H2 via electrolysis at sea will maximise the immense potential of offshore wind energy. Countries with a coastline, such as Spain and Portugal, can drastically reduce their dependence on fossil fuels and improve their national energy security, while producing net-zero emissions and boosting local economies.”


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