EDP Renewables (EDPR), a global leader in renewable energy, has inked a historic Power Purchase Agreement (PPA) with Lhyfe, a prominent green hydrogen producer.
Facilitated through Kronos Solar EDPR, this landmark deal marks the first-ever long-term corporate contract for renewable energy supply in Germany, a market EDPR entered in 2022.
This groundbreaking PPA signifies a pivotal moment in the renewable energy landscape of Germany. Not only is it the first such agreement between EDPR and a hydrogen company, but it also materializes the industrial collaboration between the two entities. The agreement spans 15 years, with Kronos Solar EDPR providing Lhyfe with renewable energy generated by a 55 MWp solar project in Meuselwitz, northeastern Germany, expected to be grid-connected by 2025.
The solar project in Meuselwitz is anticipated to produce 58 GWh of clean energy annually, equivalent to powering approximately 18,000 households in the region. This renewable energy will be the cornerstone of Lhyfe’s green hydrogen production sites in Baden-Württemberg and Lower Saxony, with a combined maximum capacity of 8 tons of green and renewable hydrogen per day.
Duarte Bello, Chief Operating Officer for Europe at EDP Renewables, emphasizes the strategic significance of the agreement, stating, “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.”
For Lhyfe, this Corporate Power Purchase Agreement (CPPA) stands as its largest to date, ensuring a stable and renewable electricity supply for its burgeoning green hydrogen production sites. The CEO and founder of Lhyfe, Matthieu Guesné, notes the local and long-term nature of the agreement, securing a reliable renewable power source for hydrogen production and contributing to the broader decarbonization of mobility and industry.
This recent collaboration follows a strategic partnership initiated in 2022 between Lhyfe and EDP Renewables. The previous agreement established EDPR as the supplier of renewable electricity to Lhyfe’s hydrogen generation projects, fostering joint efforts to identify opportunities for co-developing projects aimed at decarbonizing sectors where electrification proves challenging.
EDPR’s entry into the German market in 2022, through the acquisition of Kronos Solar EDPR, has positioned the company with a pipeline exceeding 8 GWp in various stages of solar utility-scale development, including agri-PV projects. While currently focusing on solar technology, EDPR has ambitious plans to venture into wind projects in Germany by the end of the decade.
As EDPR and Lhyfe spearhead this groundbreaking PPA, the collaboration not only signals a commitment to clean energy but also charts a course for the widespread adoption of green hydrogen in Germany’s industrial and mobility sectors.
