Mitsui & Co. invests €10mn in France’s Lhyfe

Lhyfe has formed a partnership with UK-based headed Aquaterra Energy and drilling contractor Borr Drilling to develop Project Haldane, an offshore green hydrogen production in the North Sea. (Image: Lhyfe.)

Mitsui & Co. has invested €10mn to fund the expansion of Lhyfe Labs, a green hydrogen producer based in France, the companies said.

Mitsui’s investment follows a previous investment from Andera Partners, Swen Capital, CDC Banque des Territoires and several of its original shareholders, which injected € 66mn into Lhyfe last year.

Lhyfe said it has developed the world’s first industrial site to produce renewable green hydrogen using power from wind turbines, which it inaugurated in 2021. The company is active in 10 countries in Europe (France, Germany, Belgium, the Netherlands, Denmark, Sweden, Finland, Norway, Spain and Portugal.)

Lhyfe said it has a sales pipeline of over 90 projects across 11 countries and with production start dates between 2022 and 2028. Its target markets are transportation and industry.

Lhyfe started an offshore hydrogen production program in 2019 that is connected to a floating wind turbine. The project will enter the test phase in the third quarter of 2022. This pilot site will produce 400 kilos of renewable hydrogen per day and will make Lhyfe the first operator to have both offshore and onshore experience.

Mitsui is a member of the Hydrogen Council, a global organization led by a number of leading companies in the fields of energy, transport, industry and investment for the development of the hydrogen economy. Mitsui has invested in a wide range of businesses throughout the hydrogen value chain.

Mitsui said it invested in Lhyfe because it believes in the company and in its ability to deploy its solutions widely. Mitsui, by utilizing its global network and assets around hydrogen related businesses, intends to support Lhyfe in identifying commercial opportunities, enhancing Lhyfe’s competitiveness, and pursuing international expansion.

“Lhyfe has developed unique expertise in renewable green hydrogen production, as well as an ability to create ecosystems and a strong vision for the future of the sector,” said Hiroshi Kakiuchi, managing officer at Mitsui.

“We are very proud to welcome such an important player as Mitsui as our first international partner. This partnership further confirms the interest of the market in our renewable green hydrogen,” said Lhyfe CEO and founder Matthieu Guesné. “This agreement with Mitsui will give an important boost to our development in strategic markets internationally, to decarbonize transportation and industry quickly and on a massive scale.”

BNP Paribas acted as its financial advisor for the fund raising. As a founding member of the Hydrogen Council, BNP Paribas has created a Low Carbon Transition group, a network of experts, dedicated to advising, financing and more generally supporting development of a low-carbon economy.

In addition, Lhyfe has formed a separate partnership with UK-based headed Aquaterra Energy and drilling contractor Borr Drilling to develop an offshore green hydrogen production in the North Sea, Project Haldane.

Project Haldane will develop an industrial-scale offshore green hydrogen production concept, through the deployment of an electrolyzer system on a converted jack-up rig. Founded in 2017 in Nantes, Lhyfe produces and supplies renewable green hydrogen for transportation and industry.