Lhyfe reaches a major milestone in the UK with two of its green hydrogen production projects

Lhyfe, one of the world's pioneers in the production of green and renewable hydrogen, is pleased to announce that both of its planned green hydrogen production projects in Wallsend, North Tyneside, and Kemsley, Kent, have been shortlisted under the UK Government’s Hydrogen Allocation Round 2 (HAR2), a public auction system to support the production of low-carbon or renewable hydrogen.

Both facilities plan to supply green hydrogen to industrial users and transport operators in their region, contributing to decarbonisation efforts and the growth of the UK’s hydrogen economy.

- Kemsley: this 80 MW onsite plant is strategically positioned in the North of Kemsley (Kent). It plans to produce up to 32 tonnes of green hydrogen per day, primarily for an industrial player in the region

- Wallsend: the 20 MW facility[2] is located on the site of the historic Neptune Bank Power Station (Wallsend, North Tyneside). It plans to produce up to 8 tonnes of green hydrogen per day.

As part of the HAR2 mechanism, the winners will receive public financial support in the form of a Contract for Difference (CfD), a mechanism that guarantees them in the very long term a fixed price for the hydrogen produced, thereby enhancing the visibility and bankability of the projects.

Lhyfe is a producer and supplier of green, renewable hydrogen throughout Europe. Its hydrogen is produced by water electrolysis, at production sites powered by renewable electricity.

Lhyfe has a unique track record with the installation and operation of 6 green hydrogen production sites, securing future deployments of sites with increasing capacities including in the UK. Its first plant, located in France, has been producing green, renewable hydrogen for over 4 years.

In 2024, the Group made more than 470 deliveries to almost 50 clients in 8 European countries, relying on its nearly 70 containers fleet - one of the largest modern bulk hydrogen transport fleets in Europe -, and with a 99% service rate.

Through its Lhyfe UK Ltd subsidiary, launched in 2022 and operating from Newcastle, Lhyfe aims to meet the increasing demand from British companies aiming to reduce their reliance on natural gas and other fossil fuels. With UK government support for its projects, as well as its proven unique expertise on operational or under construction sites in France and Germany, Lhyfe aims to become a major supplier of green hydrogen in the UK, boosting the country’s energy security and creating new economic opportunities.

It also has ambitions to develop offshore hydrogen production, tapping into the huge offshore wind potential the UK offers.

Boris Davis, Head of Business Development UK at Lhyfe, said: “We are delighted that our Wallsend and Kemsley projects have been shortlisted, given the fiercely competitive nature of the process. This demonstrates the government's confidence in Lhyfe’s ability to rapidly develop and operate high-capacity sites, and to meet the UK needs. We look forward to working with the Department for Energy Security and Net Zero (DESNZ) to progress at pace to the next stage and ultimately get the production sites up and running.”

The implementation of these projects is subject to final agreements with the UK government, the granting of operational and environmental permits, building permits, and to a financial investment decision.