Lhyfe and Source Galileo have inked a joint agreement to establish commercial-scale green and renewable hydrogen production units in the UK and Ireland. The companies have signed a memorandum of understanding with the goal of deploying hydrogen production facilities powered by renewable energy.
Under the agreement, Lhyfe and Source Galileo will combine their expertise to generate and supply clean gas to a variety of customers across industry and transport, helping them decarbonise their operations. Additionally, the energy firms are also looking for opportunities in Ireland, focusing on identifying consumers and assessing factors such as grid availability, power supply, land accessibility, and planning requirements.
In December 2023, Lhyfe announced its plans to produce up to 330 tonnes of green hydrogen per day at the Lubmin plant in Mecklenburg-Vorpommern, Germany, with a targeted commissioning date of 2029. Part of Lhyfe’s backbone development strategy, this plant will feed into the German core hydrogen pipeline network, for the development of which the German government recently unveiled a €20 billion financing plan.
REGlobal’s Views: Lhyfe aims to have a green hydrogen production capacity of 200 MW by the end of 2026 and 3 GW by the end of 2030. Meanwhile, Source Galileo already has an impressive pipeline of 10 GW+ across offshore wind and green hydrogen segments. Thus, these companies are well-suited for developing green hydrogen hubs across the UK and Ireland targeting industries and transport sectors first, and then also developing green hydrogen from offshore wind. The companies’ strategy comes at a time when the UK government has set a low-carbon hydrogen production target of 10 GW by 2030 and Ireland plans 2 GW of hydrogen production from offshore wind farms in the country by 2030.
