Lhyfe, a leader in green and renewable hydrogen production, and EDP Renewables, a company specialising in the development of renewable energy, are announcing the signing of a 15-year renewable electricity supply contract or corporate power purchase agreement (PPA).

Under this 15-year PPA, Lhyfe will buy renewable energy generated by a 39 MWac (55 MWp) solar project in Germany developed by EDP Renewables, through Kronos Solar EDPR, that is expected to be connected to the grid during 2025.

This PPA is the first materialisation of the industrial agreement between the two companies, in which it was agreed that EDPR will supply renewable electricity to Lhyfe’s hydrogen generation projects and both companies will identify opportunities for the co-development of projects to decarbonise challenging sectors where electrification is not feasible.

For Lhyfe, this PPA is its largest to date and secures the 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 tpd of green and renewable hydrogen, 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 PPAs 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.