Lhyfe and STRABAG have signed a strategic co-development partnership agreement aimed at accelerating green hydrogen projects in Germany, at a pivotal moment for the European hydrogen market following the implementation of the Renewable Energy Directive III (RED III).

The framework agreement combines Lhyfe’s operational expertise in the production and supply of renewable hydrogen with STRABAG’s long-standing experience in construction and infrastructure development. The partnership is expected to facilitate the identification, development and execution of future hydrogen projects in Germany and could later expand to other European countries.

Germany strengthens regulatory framework for renewable hydrogen

The announcement comes as Germany advances the transposition of RED III into national law, positioning itself among the most advanced European markets in structuring demand for renewable fuels of non-biological origin (RFNBOs).

The directive introduces binding targets encouraging the use of renewable hydrogen in key industrial sectors, creating a more predictable and regulated market environment. According to the companies, this regulatory clarity is expected to improve long-term demand visibility and accelerate investment decisions across the hydrogen value chain.

Combining industrial expertise and infrastructure capabilities

Under the agreement, STRABAG will contribute its expertise across the full lifecycle of infrastructure projects, including planning, engineering, construction, financing and long-term operation. The company said the partnership aligns with its strategy to support the development of sustainable energy systems and modern infrastructure solutions.

The companies stated that the collaboration is expected to accelerate project planning and implementation, reduce development and execution risks, and support the expansion of hydrogen infrastructure in Germany and across Europe over the longer term.

“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,” said Wolfgang Zechmeister, Division Manager at STRABAG.

Luc Graré, Chief Strategy Officer at Lhyfe, said the partnership comes “at a decisive moment for the market” and added that combining STRABAG’s industrial and construction expertise with Lhyfe’s operational experience “creates a strong foundation to accelerate project development and execution.”