Kallista Energy has inked a deal to supply wind-generated electricity to Lhyfe, a pioneering player in the green and renewable hydrogen production sector.
This corporate power purchase agreement (CPPA), the first of its kind for the emerging green hydrogen market, is bolstered by support from the French government and the European Union, marking a significant milestone in the transition to cleaner energy sources.
The partnership focuses on the repowering of a wind park located in Brachy, Seine-Maritime, France, that has been operational for nearly 17 years. Kallista Energy, the owner and operator of the wind farm, plans to replace its existing wind turbines with the latest-generation models. This revamp is expected to significantly enhance electricity generation from the wind park without increasing the number of turbines.
The CPPA signed between Kallista Energy and Lhyfe spans 15 years and has secured bank financing for the wind park’s repowering. This agreement effectively secures the power supply for Lhyfe’s forthcoming green hydrogen production sites, supporting the company’s sustained growth in the green hydrogen sector.
The repowered Brachy wind park is set to be operational by the summer of 2024 and will feature five Vestas V126 wind turbines, collectively delivering 15 MW of power. This upgrade will increase the park’s annual renewable electricity output to 46 GWh. All the electricity generated will be dedicated to powering Lhyfe’s green and renewable hydrogen production sites, which play a vital role in decarbonizing sectors reliant on fossil fuels or carbon-derived hydrogen.
Lhyfe, which already has a production site in Pays de la Loire since 2021, is slated to commission two more units in Brittany and Occitanie by the year’s end, with a maximum total production capacity of 4 tonnes of green and renewable hydrogen per day. The company also has additional projects in the pipeline, including ventures in regions like the Central Loire Valley and eastern France. This CPPA with Kallista Energy strengthens Lhyfe’s network of renewable electricity suppliers while ensuring a long-term supply of green electricity for future development, thus guaranteeing competitive sales conditions for renewable hydrogen in the long run.
The importance of this partnership lies in the complementarity of renewable energy and green hydrogen. Wind energy, when transformed into hydrogen through electrolysis, offers a rapid pathway to decarbonize industries that can’t directly use electricity. Conversely, hydrogen’s flexibility effectively eliminates the variability in wind energy production. Frédéric Roche, CEO of Kallista Energy, expressed pride in the partnership, noting that the repowering project increases power generation without adding more turbines.