Lhyfe lays the foundation stone of its largest green hydrogen production plant in France
Lhyfe kicked off the large-scale production of green hydrogen in Auvergne-Rhône-Alpes. The aim is to produce green hydrogen locally, using renewable electricity and the electrolysis of water, to decarbonise mobility and industry in the region.
Lhyfe officially started construction of its green hydrogen production plant in Le Cheylas, at the former Ascométal steelworks waste storage site, on a 7,000 m2 plot of land. The project will contribute to the reindustrialisation of this brownfield site, initiated by its current owner SLS Actiparc Sillon Alpin.
The site, which has been named Lhyfe Le Cheylas, was initially planned to have 5 MW of capacity producing up to 2 t/day, but instead, will have a production capacity of up to 4 t/day (i.e. an installed electrolysis capacity of 10 MW), right from its launch – planned early 2026 – to meet the demand of the particularly dynamic local market. This doubling of capacity will make it the largest Lhyfe site in France – the next largest are Bessières and Buléon, each with a capacity of 5 MW.
As a pure player and pioneer in green hydrogen, Lhyfe produces its hydrogen by electrolysis of water and uses electricity from renewable sources supplied by national producers. The company has already installed four production sites, including three in France and one in Germany.
Decarbonising mobility and industry with green hydrogen
The purpose of this green hydrogen is two-fold – decarbonising heavy and intensive transport (particularly lorries, buses, etc.), and industry. As France’s leading industrial region in terms of employment, Auvergne-Rhône-Alpes is at the forefront of the deployment of hydrogen for mobility and industry in Europe. It launched its first projects in 2017, including the Zero Emission Valley (ZEV) project, supported by the Region and implemented by HYmpulsion, and IMAGHyNE (Investment to Maximise the Ambition for Green Hydrogen iN Europe) in 2024. This latest project, in which Lhyfe is a direct partner with its production unit in Le Cheylas, aims to develop a large-scale renewable and low-carbon hydrogen economy in the Auvergne-Rhône-Alpes Region, fully integrated with the existing energy system and meeting the needs of high-emission sectors.
Lhyfe has signed a ten-year sales contract with HYmpulsion, giving priority to supplying HYmpulsion hydrogen stations in the Alps, with a volume of 600 tonnes per year (i.e. around 1.6 tonnes a day), over a total period of ten years. Six stations have already been inaugurated across the HYmpulsion network and seven others are currently under construction.
With a total production capacity of 4 tonnes per day, Lhyfe will also be able to meet the significant needs of regional industry, replacing grey hydrogen and natural gas in particular, in sectors such as metallurgy, microelectronics, chemicals, etc.
A project supported by Europe
The Lhyfe Le Cheylas hydrogen plant has received support from the Just Transition Fund, as part of the 2021-2027 European Regional Programme implemented by the Auvergne-Rhône-Alpes Region, in close collaboration with the areas concerned. The contracted subsidies amount to €5.5 million.
The project is also receiving financial support from the Clean Hydrogen Partnership as part of the European large-scale hydrogen valley project IMAGHyNE, coordinated by the Region. The contracted subsidies here are for €0.75 million.
Read also: Lhyfe launches its first UK project to produce green hydrogen
