Lhyfe and Capital Energy have signed a collaboration agreement for the joint development of offshore renewable hydrogen projects in Spain and Portugal. Lhyfe is a pioneer in green and renewable hydrogen production and a pioneer in offshore hydrogen production projects, Capital Energy is a Spanish energy producer and distributor founded over twenty years ago and which aspires to become the first 100% renewable vertically integrated energy operator on the Iberian Peninsula.

Under the agreement, the two companies will work together to create hydrogen production sites at some of the offshore wind farm sites currently being developed by Capital Energy. The Spanish energy company already has a development pipeline of more than 7.5 gigawatts (GW) in both countries.

For Lhyfe and Capital Energy, the joint installation of offshore wind farms and hydrogen production sites would have considerable benefits, mainly in two key areas: economic benefits through the economies of scale achieved, and social benefits through the growing industrial overlap of the projects, given that a greater number and variety of suppliers and specialists will be required.

Such initiatives will also benefit the energy system as a whole as the wind energy produced in these wind farms would be more controllable, avoiding curtailments. And in some cases it would be possible to send less power to the grid (e.g. in case of congestion of the grid) and more to the hydrogen production unit, to which some of the wind turbines would be directly connected.