French firm Lhyfe has raised €2.5 million through a public crowdfunding campaign—surpassing sector norms and introducing a novel funding approach to Europe’s decarbonization landscape.
Nearly 1,200 citizen investors participated, with individual contributions ranging from €300 to €75,000. The initiative, hosted on impact investment platform Lita.co, marks the first public-facing capital raise for hydrogen production projects in Europe.
The scale and success of Lhyfe’s campaign offer a data point that may influence future capital strategies in the sector. Compared to Lita.co’s average campaigns, which typically raise €500,000 from around 320 participants, Lhyfe’s initiative recorded nearly five times the investment volume and more than triple the number of contributors. The appeal appears to stem from an increasingly engaged public seeking tangible roles in the energy transition—and from Lhyfe’s positioning as a localized solution to climate and industrial challenges.
The funds raised will support four hydrogen production sites in France and Germany, which are already backed by €53 million in traditional project financing agreements signed in April 2025. The crowdfunding thus complements institutional capital, rather than substituting it—an important distinction for project developers evaluating replicability.
For the green hydrogen sector, which has traditionally relied on large-scale private and public investments, Lhyfe’s move into public financing represents both a social and financial experiment. With its bond-based model, the campaign has not only secured non-dilutive funding but has also positioned local citizens as direct stakeholders in infrastructure development—potentially helping to smooth regulatory pathways and strengthen regional acceptance.
As Europe intensifies its hydrogen targets under REPowerEU, the ability to demonstrate public buy-in—not just governmental or investor support—could influence policy traction, permit timelines, and social license to operate. Especially in regions wary of industrial sprawl, co-ownership or local financing may offer a soft lever to address the not-in-my-backyard (NIMBY) effect often associated with energy infrastructure projects.
However, analysts caution that crowdfunding remains a niche tool in energy finance. Its high administrative overhead and limitations on scale restrict its use to smaller capital tranches. Moreover, it raises questions around risk distribution, investor protections, and transparency—especially when applied to technologies with volatile market pathways like green hydrogen.
Stay updated on the latest in energy! Follow us on LinkedIn, Facebook, and X for real-time news and insights. Don’t miss out on exclusive interviews and webinars—subscribe to our YouTube channel today! Join our community and be part of the conversation shaping the future of energy.
