Lhyfe, a leading European company in green and renewable hydrogen production, has announced that its two planned projects in the UK—located in Wallsend, North Tyneside, and Kemsley, Kent—have been shortlisted under the UK Government’s Hydrogen Allocation Round 2 (HAR2). This public auction supports low-carbon hydrogen production. Both facilities aim to supply green hydrogen to industrial users and transport operators, aiding decarbonization and boosting the UK’s hydrogen economy.

The Kemsley project, an 80 MW onsite plant in North Kemsley, Kent, plans to produce up to 32 tonnes of green hydrogen daily, mainly for a local industrial client. The Wallsend facility, a 20 MW plant at the historic Neptune Bank Power Station site in North Tyneside, targets a daily output of 8 tonnes. Successful bidders in HAR2 will receive a Contract for Difference (CfD), ensuring a stable price for hydrogen over the long term, enhancing project feasibility.

Lhyfe produces green hydrogen through water electrolysis, powered by renewable electricity. The company operates six production sites across Europe, with its first plant in France running for over four years. In 2024, Lhyfe delivered over 470 shipments to nearly 50 clients across eight European countries, using a fleet of nearly 70 modern hydrogen transport containers, achieving a 99% service rate. Through its UK subsidiary, Lhyfe UK Ltd, established in 2022 and based in Newcastle, the company seeks to meet growing demand from British firms transitioning from fossil fuels.

Boris Davis, Head of Business Development UK at Lhyfe, stated: “We are delighted that our Wallsend and Kemsley projects have been shortlisted, given the fiercely competitive nature of the process. This demonstrates the government’s confidence in Lhyfe’s ability to rapidly develop and operate high-capacity sites, and to meet the UK needs. We look forward to working with the Department for Energy Security and Net Zero (DESNZ) to progress at pace to the next stage and ultimately get the production sites up and running.” The projects’ next steps depend on final government agreements, permits, and investment decisions.

Lhyfe, active in 12 European countries with 199 employees as of December 2024, also plans to explore offshore hydrogen production, leveraging the UK’s vast offshore wind resources. Since launching the world’s first industrial-scale green hydrogen plant connected to a wind farm in 2021 and the first offshore hydrogen pilot in 2022, Lhyfe continues to expand its footprint, supporting sustainable energy solutions across industry and transport sectors.