Lhyfe has begun construction of its green hydrogen production plant in Le Cheylas, located in the Auvergne-Rhône-Alpes region. The facilities will be situated on the former waste storage site of the Ascométal steel mill, covering an area of 7,000 m². The project will contribute to the reindustrialization of this abandoned industrial area, initiated by its current owner, SLS Actiparc Sillon Alpin.
According to the company, the site, named Lhyfe Le Cheylas, was initially planned with a capacity of 5 MW, allowing it to produce up to 2 tons per day. However, its production capacity will be increased to up to 4 tons per day, equivalent to an installed electrolysis capacity of 10 MW.
The plant is expected to start operating in early 2026 to meet the needs of the particularly active local market. This capacity expansion will make Lhyfe Le Cheylas the largest Lhyfe plant in France, surpassing the Bessières and Buléon plants, each with a capacity of 5 MW.
The company's hydrogen is produced through water electrolysis and uses electricity from renewable sources supplied by domestic producers. Lhyfe has already installed four production centers, three in France and one in Germany.
Auvergne-Rhône-Alpes is at the forefront of deploying hydrogen for mobility and industry in Europe. It launched its first projects in 2017, including the Zero Emission Valley (ZEV) project, supported by the Region and implemented by HYmpulsion, and IMAGHyNE (Investment to Maximise the Ambition for Green Hydrogen in Europe) in 2024.
The latter project, in which Lhyfe is directly involved with its production unit in Le Cheylas, aims to develop a large-scale renewable hydrogen economy with low carbon emissions in the Auvergne-Rhône-Alpes region, fully integrated into the existing energy system and responsive to the needs of high-emission sectors.
With Le Cheylas, Lhyfe aims to contribute to the ambitious goals of the Auvergne-Rhône-Alpes Region, which include promoting the development of clean mobility and low-carbon industry, and improving air quality in the Alpine valleys.
This project has received funding from the Just Transition Fund as part of the European Regional Program 2021-2027, executed by the Auvergne-Rhône-Alpes Region in close collaboration with the interested areas. The contracted grants amount to €5.5 million.
The project also receives financial support from the Clean Hydrogen Partnership within the European large-scale hydrogen valley project IMAGHyNE, coordinated by the Region. The contracted grants amount to €0.75 million.
Thierry Kovacs, Vice President of the Auvergne-Rhône-Alpes Region responsible for Environment and Positive Ecology, stated that “European funding is an important lever to support this transition towards a carbon-neutral economy. During the 2021-2027 period, approximately €77 million of joint funding will be allocated to this issue in the subsidized areas of the Rhône and Isère departments. The region uses this fund to support the hydrogen industry, which generates jobs. The Lhyfe electrolyzer project is a good example of this, and with the support of the Region and Europe, it will be able to launch its largest ecological hydrogen production plant, an essential link in the value chain of Auvergne-Rhône-Alpes.”
Thierry Raevel, President of HYmpulsion and Director of Parliamentary Relations and Regions at ENGIE, emphasized that “hydrogen provides a response to three challenges for our regions: decarbonizing light and heavy mobility, improving air quality in our valleys, and creating local jobs. We are proud to establish this partnership with Lhyfe for the production of renewable hydrogen. This project will allow us to supply Hympulsion stations, complementing the hydrogen produced by our 2 MW electrolyzer (around 800 kg of hydrogen per day).”
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