France’s Lhyfe Raises €17 M for Expansion of Renewable Hydrogen Production Sites in Europe

French green hydrogen producer Lhyfe has raised funds for a third time, for a sum of €17 million, to support its expansion of renewable hydrogen production sites in Europe.

Most of the funds came from Andera Partners via its new green infrastructure investment fund Andera Infra. Ovive (part of Les Saules group) and the risk capital company SFLD (Société Financière Lorient Développement) also backed Lhyfe in this fundraising.

Founded in 2017, Lhyfe is working on the industrial production of green hydrogen from renewable energy. In September 2021, Lhyfe marked a world first with the commissioning of a 2.5 MW production facility in Bouin in Vendée (France) that by 2023 will generate up to a tonne of green hydrogen a day using electricity sourced directly from a nearby wind farm, making Lhyfe one of the leading operators in a rapidly growing market, claims the company.

Lhyfe uses a local supply chain approach – green hydrogen is produced locally at sites powered by local renewable energy sources, to meet customers’ needs as closely as possible. The company especially targets industry, communities and transport companies, which have a real and exponential need for renewable hydrogen.

After a year marked by the commissioning of this first production site and the raising of €50 million, Lhyfe’s aim in 2022 is to double its sales, technical and R&D teams (from 80 to 170 staff) in order to reinforce its position as a leader for green hydrogen.

With the support of its new partner Andera Infra, Lhyfe will be pursuing its technological and geographical expansion.

This fundraising comes at a particularly favourable time for renewable hydrogen operators with the industry receiving renewed public policy support in France and the EU, including large-scale investment plans. France has set out an overall package of €9 million through its France 2030 investment plan and its strategy for carbon-free hydrogen, and the EU is providing support through its Innovation Fund and by earmarking part of Member States’ recovery plan funding for hydrogen development. Central to this strategy is the goal to make France the leader for green hydrogen and bring the share of hydrogen to 12% of the European energy mix – a goal which the teams of Andera Infra and Lhyfe both share.

Matthieu Guesné, Founder & CEO Lhyfe, welcomed this raising of funds: “This new fundraising comes at a time of sharp acceleration in the market and in demand for renewable hydrogen all over Europe. We are very happy to have the support of a growing number of key green energy transition players like Andera Partners. Their precious support means that we can continue to seize the opportunities that arise to help make energy transition as virtuous and as fast as possible at European level.”

The funds raised include a €15 million investment from Andera Partners. Ovive (part of Les Saules group), which also invested in the two previous rounds of fundraising, renewed its support with a €2 million investment. SFLD made its first investment in Lhyfe’s capital, for the sum of €0.3 million.