French green hydrogen producer Lhyfe said on Thursday that the French Prime Minister has formally signed off on a €149 million grant to support the company’s large-scale hydrogen production facility near the Grand Canal du Havre in Normandy.
The funding agreement marks a significant step for Lhyfe’s Green Horizon project, which will enable the company to surpass 100 megawatts of installed electrolysis capacity. Once operational, the facility is expected to produce up to 34 tonnes of green hydrogen per day in one of Europe’s key industrial port regions.
“This official signing confirms the French state’s strong commitment to supporting the emergence of a green hydrogen industry,” Lhyfe said in a statement.
The project, which was selected in 2022 as part of the third wave of the Important Projects of Common European Interest (IPCEI) on hydrogen, aims to contribute to the decarbonisation of local industries, including the nearby Yara facility.
The €149 million grant, administered by French public investment bank Bpifrance, will be disbursed in stages. An initial advance of €18 million is scheduled for release by June 2025, allowing Lhyfe to recover past investments and move forward with the next development phases. Further payments will be tied to the achievement of specific milestones outlined in the funding agreement, with reimbursements made for eligible and verified expenses over a four-year period.
The 2.8-hectare site in Gonfreville-l’Orcher is expected to be completed by 2029. The project was previously endorsed in France’s 2021 national call for expressions of interest in hydrogen and received final validation from the European Commission in February 2024.
“This project will help structure a French and European green hydrogen industry while supporting the decarbonisation of major industrial actors,” Lhyfe stated.
