Lhyfe, EDP Renewables sign 15-year contract for supply of renewable electricity in Germany

Lhyfe and EDP Renewables have signed a 15-year Corporate Power Purchase Agreement (CPPA), under which Lhyfe will buy renewable energy generated by a 39 MWac (55 MWp) solar project in Germany developed by EDPR, through Kronos Solar EDPR, expected to be connected to the grid in 2025.

For Lhyfe, this CPPA is its largest to date and secures renewable power supply for its future green hydrogen production sites in Germany, thus consolidating its sustained growth. In Baden-Württemberg and in Lower Saxony, Lhyfe is building two production units representing a maximum total production capacity of 8 tonnes of green and renewable hydrogen per day, which will be supplied locally for uses related to mobility and industrial processes. This CPPA allows Lhyfe to further reinforce its European network of renewable electricity supplier partners, following the signing of two other CPPAs in 2023, while guaranteeing competitive sales conditions for renewable hydrogen in the long-term.

For EDP Renewables, this deal is a milestone as it is the first long-term corporate contract for renewable energy supply signed in Germany since its expansion and also the first PPA signed with a hydrogen company. This PPA reflects its success in securing new PPAs and reinforces its low-risk profile and growth strategy based on the development of competitive projects with long-term visibility, fostering the acceleration of the energy transition and the decarbonization of the economy. By signing another long-term contract with a major client, EDPR reaffirms its strong PPA activity with utilities and big companies, and nowadays has more than 55% of the 2023–2026 additions already secured

EDPR entered Germany in 2022 through the acquisition of Kronos Solar EDPR and currently has a pipeline of over 8 GWp in different stages of development in solar utility scale, including agri-PV projects. Although EDPR’s business in Germany is focused on solar technology, the company has the ambition to develop wind projects in the country by the end of the decade.

“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,” said Duarte Bello, Chief Operating Officer for Europe at EDP Renewables. “We are happy to be able, through Kronos Solar EDPR, to contribute to these goals by partnering with Lhyfe, whose activity complements our aim of reducing CO2 emissions.”

Matthieu Guesné, CEO and founder of Lhyfe, added: “Thanks to this agreement, we are securing in a local and long-term manner our renewable electricity supply. Almost the entire output of the EDPR photovoltaic solar plant will be used to power our green and renewable hydrogen production sites contributing to the decarbonisation of mobility and industry which currently use fossil fuels or carbon-derived hydrogen. We also keep strengthening our strategic relation with EDPR, with whom we are extremely happy to jointly collaborate in the H2 industry.”

HTW Editorial Team

HTW Editorial Team

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