H2 Economy: Lhyfe And EDPR Sign Long-term PPA For Green Hydrogen Production
Oviedo, Spain - EDP Renewables (EDPR), through Kronos Solar EDPR, has signed a long-term agreement with the hydrogen company Lhyfe for the supply of solar power. This is the first Power Purchase Agreement that EDPR has concluded in Germany.
For Lhyfe, the PPA concluded with Kronos Solar EDPR is the largest electricity supply contract to date for its future green hydrogen production facilities in Germany. Lhyfe is building two production plants in Baden-Württemberg and Lower Saxony with a maximum total capacity of 8 tonnes per day. This hydrogen will be supplied locally for applications in the mobility sector and for industrial processes.
"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 photovoltaic targets by the end of this decade," emphasises 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 photovoltaic 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," says Matthieu Guesné, CEO and founder of Lhyfe.
EDPR entered Germany in 2022 through the acquisition of Kronos Solar EDPR and currently has a pipeline of more than 8 GWp in various stages of development in the field of solar power supply, including agricultural PV projects. To date, EDPR's business in Germany has focussed on solar projects, but the aim is to develop wind projects in Germany by the end of the decade.
EDPR shares lost 4.3 per cent in the first four trading days of this week to a price of EUR 14.94 (closing price, 25/01/2024, Stuttgart Stock Exchange). Compared to the price at the turn of the year, this corresponds to a drop of 18 per cent.
Source: IWR Online, 26 Jan 2024