Lhyfe (EURONEXT: LHYFE), a leading global producer of green and renewable hydrogen, has achieved a significant breakthrough in the UK market, with two of its flagship projects – Wallsend and Kemsley – shortlisted under the UK Government’s Hydrogen Allocation Round 2 (HAR2).
The shortlist selection marks a pivotal moment in Lhyfe’s UK rollout, signalling strong government confidence in the company’s ability to deliver large-scale, low-carbon hydrogen production to accelerate decarbonisation efforts across industry and transport sectors.
The Projects:
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Kemsley (Kent): An 80 MW on-site green hydrogen production facility that will produce up to 32 tonnes of green hydrogen per day, primarily serving a major industrial customer in the region.
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Wallsend (North Tyneside): A 20 MW facility located at the historic Neptune Bank Power Station site, designed to produce up to 8 tonnes of green hydrogen daily.
Both projects will support regional decarbonisation and contribute to the UK’s ambitions to become a global hydrogen leader. They aim to supply clean hydrogen to industrial and mobility users, helping reduce dependence on fossil fuels.
Securing Long-Term Viability with Government Support
As part of the HAR2 auction, successful projects will benefit from a Contract for Difference (CfD) – a long-term price support mechanism that guarantees a fixed price for green hydrogen over a 15-year period. This reduces risk for producers and offtakers and improves financial viability for project developers.
Boris Davis, Head of Business Development UK at Lhyfe, commented:
“Being shortlisted for HAR2 in such a competitive field highlights the UK Government’s trust in Lhyfe’s expertise and proven ability to develop and operate high-capacity green hydrogen sites. We’re excited to move forward in collaboration with DESNZ and bring both projects to life.”
Proven Expertise Across Europe
Lhyfe has already installed and operated six green hydrogen production sites in Europe and has built one of the largest hydrogen logistics fleets with over 70 containers and a 99% service success rate. In 2024 alone, Lhyfe delivered hydrogen to nearly 50 clients across eight countries.
Through its UK subsidiary, Lhyfe UK Ltd, based in Newcastle and established in 2022, the company is strategically positioned to help British businesses transition from natural gas to clean hydrogen, enhancing national energy security and economic growth.
With ambitions to also develop offshore hydrogen production powered by the UK’s vast offshore wind resources, Lhyfe is poised to play a central role in the future of the UK’s hydrogen economy.
Looking Ahead
The next stage of development will depend on final agreements with the UK government, environmental and operational permits, and investment decisions. However, the HAR2 shortlisting is a major step forward in making Lhyfe a cornerstone of green hydrogen supply in the UK.
