French renewable hydrogen trailblazer secures major new backer

French green hydrogen producer Lhyfe says it has secured a €10 million investment from leading Japanese trading and investment conglomerate Mitsui & Co, which it says will be used to develop more projects and expand overseas.

Lhyfe currently operates the world’s first industrial site to produce renewable green hydrogen using power from wind turbines, which was inaugurated in 2021. It says has a sales pipeline of over 90 projects with production start dates between 2022 and 2028.

One of those projects involves a “world first” offshore hydrogen production site connected to a floating wind turbine. The program will enter a test phase in the third quarter of 2022 and is expected to produce 400-kilos of renewable hydrogen per day.

Mitsui’s €10 million investment is the first international investment and follows on from a €66 million raising conducted last year from several French companies and original shareholders.

“We are very proud to welcome such an important player as Mitsui as our first international partner,” said Matthieu Guesné, CEO and founder of Lhyfe.

“This agreement with Mitsui will give an important boost to our development in strategic markets internationally, to decarbonise transportation and industry quickly and on a massive scale.”

Mitsui says it hopes to support Lhyfe to identify commercial opportunities, enhance Lhyfe’s competitiveness, and pursue greater international expansion.

“Lhyfe has developed unique expertise in renewable green hydrogen production, as well as an ability to create ecosystems and a strong vision for the future of the sector,” said Hiroshi Kakiuchi, managing officer of Mitsui.

Mitsui has already engaged in a variety of hydrogen-related businesses and made investments across the hydrogen value chain in various regions around the globe.

Mitsui is also a member of the Hydrogen Council, a global organisation led by a number of leading companies in the fields of energy, transport, industry, and investment, for the development of a larger hydrogen economy.