Highlights
- The Power Purchase Agreement, signed through Kronos Solar EDPR, is the first secured by EDP Renewables in Germany;
- EDPR intends to operate around 500 MW of solar capacity by 2026 in the country.
EDP Renewables (EDPR), leader in the development of renewable energy worldwide, signed a Power Purchase Agreement (PPA) with Lhyfe, a producer and supplier of green hydrogen to serve industry and mobility sectors. The deal signed through Kronos Solar EDPR is an important milestone as it is the first long-term corporate contract for the supply of renewable energy signed in Germany, a market that the company entered in 2022.
This PPA is also the first PPA signed with a hydrogen company and the first materialization of the industrial agreement between the two companies. It will provide renewable power for Lhyfe's future green hydrogen production sites in the region, that will be used to mobility and industrial processes, thus consolidating its sustained growth.
For 15 years, Kronos Solar EDPR will supply Lhyfe with renewable energy from a solar project developed with a 55 MWp (39 MWac) capacity and that is expected to be connected to the grid during 2025. Located in Meuselwitz, in the north-eastern Germany, this photovoltaic solar plant will produce 58 GWh of clean energy annually. The energy produced annually by this project would be enough to power the equivalent of 18,000 households in the region.
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.
For Lhyfe, this CPPA 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 tons of green and renewable hydrogen per day. This hydrogen will be supplied locally for uses related to mobility and industrial processes.
"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. 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", highlights Duarte Bello, Chief Operating Officer for Europe at EDP Renewables.
"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", Matthieu Guesné, CEO and founder of Lhyfe.
This deal follows another partnership signed between Lhyfe and EDP Renewables in 2022, 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 decarbonize challenging sectors where electrification is not feasible.
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 of developing wind projects in the country by the end of the decade.
