Lhyfe, which is one of the leading players in the world when it comes to the production of green hydrogen so as to decarbonise industry and mobility, and STRABAG, a prominent European construction services technology group, have entered into a strategic partnership contract to build green hydrogen projects in Germany together.
This framework agreement seeks to expedite the development and execution of green hydrogen projects in Germany in a setting characterised by the implementation of the Renewable Energy Directive III – RED III. In time it could be expanded to various European countries too.
Germany leading an organised and foreseeable European hydrogen market
Apparently, this announcement is coming at an important moment for the hydrogen sector in Europe. Germany is working on transposing the Renewable Energy Directive III – RED III – into national law and is leading the way in terms of structuring the demand for renewable hydrogen – RFNBO.
Interestingly, the binding objectives are establishing a market environment that is both predictable and controlled in order to incentivize the adoption of RFNBOs by certain industrial players.
This regulatory development signifies a watershed moment for the sector, as it materially improves long-term demand transparency and thus serves to speed up investment decisions all across the industry.
The operational expertise of Lhyfe in green hydrogen is complemented by the acknowledged and enduring skills of STRABAG in construction to speed up project development.
The two companies went ahead and signed an agreement that provides a framework for cooperation, bringing together their mutually beneficial expertise, to enable the detection, creation, and implementation of future green hydrogen projects.
The fact is that Lhyfe is Europe’s largest producer of bulk RFNBO hydrogen from water electrolysis by 2025, complying with the highest standards for sustainability set by the EU. Lhyfe, which is one of Europe’s cutting-edge producers and suppliers of green hydrogen, has four green hydrogen manufacturing facilities established and RFNBO Renewable Fuels of Non-Biological Origin certified, two more sites under construction, a fleet of over 80 Type 4 hydrogen containers which apparently is one of the biggest and, in fact, the most advanced bulk hydrogen transport fleets across Europe, and around fifteen storage sites.
STRABAG is able to cover the entire life cycle of construction projects – right from structuring and planning as well as engineering to implementation and long-term operation. The group also has a background in financing and investment, assisting to secure the long-term financing of projects and ensuring their financial sustainability. At the same time STRABAG is actively promoting modern infrastructure solutions and the growth of more environmentally friendly energy systems.
This partnership allows –
- expedited project planning and delivery
- focused mitigation of risks on growth and execution
- growth of hydrogen projects across Germany and, in the longer term, more widely in Europe.
The Division Manager at STRABAG, Wolfgang Zechmeister, opines that “This framework agreement is an exciting start to our partnership with Lhyfe that will deepen our project development in hydrogen. Green hydrogen is a valuable tool for decarbonising energy-intensive industries. STRABAG already has extensive experience in the construction of renewable energy infrastructure and will contribute to its further development.”
The Chief Strategy Officer at Lhyfe, Luc Graré, says that “This partnership comes at a decisive moment for the market. Combining STRABAG’s industrial and construction expertise with Lhyfe’s experience as Europe’s largest producer of RFNBO hydrogen creates a strong foundation to accelerate project development and execution. This partnership with a leading player such as STRABAG also reflects the level of maturity reached by Lhyfe and the confidence placed in our industrial know-how.”