2023 H1 results
Continued commercial ramp-up of the Bouin production unit, with revenues for the 1st half of 2023 of €0.4m, representing an increase of +40% vs H1 2022.
- Expected acceleration of sales in H2 2023, following the signing of new green H2 sale contracts
- Expected strong increase in capacity production for the end of 2023, with up to 4 tons of green and renewable hydrogen produced per day (vs. 300 kg at end of 2022)
- Acceleration of the projects in “Construction” phase: 34 MW (vs. 9 MW at the end of 2022)
- 2024 and 2026 guidance confirmed – Production capacity targeted to reach up to 22 tons of green hydrogen per day by end 2024 and up to 80 tons per day by end 2026
- Ambition: become a major player in mobility use (bulk) in France and Germany by 2025
2023 H1 results: continuing the industrial scale-up with Lhyfe accelerating its investments in future production sites
- Consolidation of teams and expertise, structuring of the company, with headcount of 192 employees as of end of June 2023 (vs. 149 at end of 2022)
- Half-year EBITDA at €(15.3)m reflecting the accelerated development and the investments in projects, together with the international structuring of the company
- Strong cash position at €127.7m as of 30 June 2023
Nantes (France) – 27 September 2023 – 7 :00 am – At its meeting held on 26 September 2023, the Board of Directors of Lhyfe (Euronext Paris – FR0014009YQ1 – LHYFE), independent producer of green hydrogen to decarbonise industry and mobility, approved its consolidated financial statements for H1 2023 (from January 1st to June 30, 2023). These financial statements were the subject of a limited review by the Statutory Auditors. The half-year financial report to end-June 2023 is available on Lhyfe‘s website, in the Investors section.
Matthieu Guesné, Founder and Chairman-CEO of Lhyfe:
« Our 1st half of 2023 is in line with 2022, with a ramp-up of our production site in Bouin which will be operating at full capacity by the end of the year to address the growing demand from our clients. We also continued the deployment of our sites under construction, the first of which will be commissioned at the end of 2023, accelerated our investments, strengthened our teams across all our geographies, and concluded new partnerships and strategic agreements, particularly in offshore.
Our projects currently under construction represent a total installed capacity of 34 MW, enabling us to confirm the increase in our production capacity to 4 tonnes of green and renewable hydrogen per day by the end of the year. By the end of 2024, we aim to increase this figure to 22 tonnes, and to 80 tonnes by 2026. »
H1 2023 highlights
Acceleration of projects in “Construction” or “Awarded” stages at mid 2023
During the 1st half of 2023, Lhyfe kept a strong pace in project development and construction of its production units, with 54 MW of installed capacity at “Construction” or “Awarded1” phase as of mid 2023, through 12 sites (versus 50 MW at year end 2022).
Among the projects in “Construction” phase, the following developments should be highlighted:
- Lhyfe Bretagne (Buléon, France): In Buléon, Bretagne (France), a unit, which will be able to produce up to 2 t/day of green hydrogen (5 MW installed capacity), is currently under construction since the beginning of 2023, with commissioning expected at end-2023. This unit is part of the VhyGo project (Vallée Hydrogène Grand Ouest) which aims to build the first supra-regional infrastructure for the distribution of green hydrogen in France and is supported by the ADEME.
- Lhyfe Occitanie (Bessières, France): In Occitanie (France), Lhyfe continues the construction of a production unit in Bessières, which will be able to produce up to 2 t/day of green hydrogen (5 MW installed capacity), with commissioning expected at end-2023.
- Lhyfe Bade-Würtemberg (Schwäbisch Gmünd, Germany): In Schwäbisch Gmünd, Germany, Lhyfe launched during the 1st half of 2023 the construction of a green hydrogen production unit with a maximum capacity of around 4 t/day (10 MW installed capacity) as well as a hydrogen distribution station for the general public and a pipeline to supply the future “H2-Aspen” technology park with green hydrogen. The plant is expected to be operational in the 2nd half of 2024. This project is part of the HyFIVE (Hydrogen For Innovative Vehicles) project, which has received a €33m funding from the European Regional Development Fund (ERDF).
- Tübingen (Germany): As part of the Deutsche Bahn and Siemens Mobility H2goesRail project, Lhyfe will launch in the 2nd half of 2023 the installation of a production site in Tübingen Germany, with a maximum capacity of 400 kg/day of green hydrogen (1 MW installed capacity), aimed at supplying hydrogen-powered trains on the Pforzheim-Horb-Tübingen line from 2024.
- Brake (Germany): Lhyfe will launch the construction of a production unit in Brake, with a maximum capacity of 4 t/day of green hydrogen (10 MW installed capacity). The construction permit has been filed during the 1st half of 2023. This site will supply local mobility and industrial uses, with a commissioning date scheduled for the 2nd half of 2024.
- Botnia Hydrogen (Sweden): Within the Botnia Hydrogen consortium, Lhyfe carries a project to develop hydrogen production and supply units in the north of Sweden, with a total maximum production capacity of 600 kg/day of hydrogen (1.5 MW installed capacity), which will address mainly HGVs and buses. The land and connections have been secured. Construction has started in the 1st half of 2023.
- Lhyfe Pays de la Loire (Bouin, France): The commercial ramp-up in the Bouin unit continues with an expansion of its customer portfolio and the signing of new sale contracts. In order to anticipate the saturation of the Bouin unit next year, an increase in production capacity is planned for 2024. Current installed capacity of 1 MW, i.e., a total production capacity up to 300 kg of green hydrogen a day, is set to rise to 2.5 MW (i.e., around 1 t/day) to meet the growing demand in the region.
Based on these achievements and on the coming commissioning of the first 5 MW modular sites in France (Lhyfe Bretagne et Lhyfe Occitanie), Lhyfe confirms the strong expansion of its installed production capacity in 2023 by 14 times compared to end 2022, raising it to up to 4 tonnes of green and renewable hydrogen per day.
Projects at an advanced stage of development as of end of June 2023 representing more than 600 MW of installed capacity by 2030
Projects at an advanced stage of development2, corresponding to the most mature project stages of the pipeline, now represent an installed capacity of over 619 MW (against 749 MW at the end of 2022).
Within these projects, projects in “Construction” phase represent an installed capacity of 34 MW at end June 2023, versus 9 MW as at end 2022, due to the conversion within the period of several projects which were in “Awarded” stage.
During the first half 2023 Lhyfe’s total commercial pipeline strengthened and represents as of 30 June 2023 an installed capacity of 10.3 GW (versus 9.8 GW at the end of 2022). Lhyfe benefits from a market environment supported by the European energy independence plan RepowerEU, which targets the production of 10 million tonnes of green hydrogen in the European Union by 2030, and by major national plans to support the deployment of the green hydrogen sector.
As of 30 June 2023, the allocation of Lhyfe’s commercial pipeline between the different project stages was as follows:
|June 2023||End 2022|
|Units in operation||2 MW||1 MW|
|Projects at “Construction”1 phase||34 MW||9 MW|
|Projects at “Awarded”1 phase||30 MW||40 MW|
|Projects at “Tender ready”1 phase||555 MW||710 MW|
|Projects at an advanced stage of development2||619 MW||759 MW|
|Projects at “Advanced development“1 phase||4.4 GW||4.1 GW|
|Projects at “Early stage“1 phase||5.3 GW||5.0 GW|
|Total commercial pipeline||10.3 GW||9.8 GW|
As a result, Lhyfe has a substantial pipeline of over 10 GW, compared with its target of 3 GW of installed capacity by 2030, for which Lhyfe is exploring a number of financing options.
€67m of secured grants to date
As of the date hereof, secured grants intended to finance research activities as well as production sites currently being deployed represents €67.4m. This amount includes notably the following new grants, secured since the beginning of the year:
- a €9.8m “Clean Hydrogen Partnership” grant awarded to Lhyfe by the European Commission and related to the HOPE project, supplemented in July by a grant awarded by the Belgian government for an amount of €13m;
- a €4.4m grant awarded by the European Commission and related to the TH2Icino project in Italy; and
- a €1.6m grant awarded by the ADEME and related to the Hy’Touraine project.
New projects and developments during first half 2023
In March 2023, Lhyfe acquired a 49% stake in the Finnish company Flexens, a developer of green hydrogen projects and “Power-to-X” (transformation of electricity into another energy carrier) projects based on renewable energy sources. Flexens already has a commercial pipeline with a total planned capacity of over 1.5 GW in Finland and abroad. The two companies will combine their expertise, market knowledge and commercial pipelines to accelerate current projects and identify new opportunities in Northern Europe, especially related to large offshore projects.
In France, Lhyfe announced on 30 June 2023 its involvement in the Hy’Touraine project, which is to be the first complete, local public-private ecosystem in France for green hydrogen. Under this project founded by four local public authorities from the Tours area and STMicroelectronics Tours, Lhyfe will build a green hydrogen production site with a capacity of up to 2 tonnes per day depending on needs (installed capacity of 5 MW), powered by renewable energy to be supplied locally while Teréga Solutions will operate the distribution infrastructure.
In Germany, Lhyfe and duisport, the owner and management company of the Port of Duisburg – the largest inland port in the world, are investigating the feasibility of building the first major electrolysis plant in the port of Duisburg. Lhyfe will first conduct the feasibility study. The hydrogen production plant with an installed capacity of 20 MW could go into operation by 2025.
Progress on our offshore projects
During the 1st half of 2023, the Group continued to progress on its various offshore projects launched since 2021, and signed partnership agreements with wind farm developers and energy companies specialising in offshore.
Commissioning of the Sealhyfe pilot plant at sea
Sealhyfe, the world’s first offshore green hydrogen production pilot, after its commissioning at quay in September 2022, has been towed 20 kilometres out into the Atlantic and successfully connected to the floating turbine of SEM-REV offshore testing site. Lhyfe and its partners designed, built and assembled all of the technology necessary for producing hydrogen offshore, including the 1 MW electrolyser, in just 16 months, in a less than 200 sq. metre area platform. On the basis of a production capacity of up to 400 kilograms of green hydrogen a day, this plant is fully operational since 20 June 2023.
The Group invested more than €1.3m on this project during the 1st half of 2023. In 2022 this project received government approval for a contribution from France 2030. This financing provided by the French government and operated by the ADEME amounts to €1m.
HOPE project selected by the European Commission and awarded with a €20m grant
The HOPE (Hydrogen Offshore Production for Europe) project, which Lhyfe coordinates within a consortium of 9 partners, has been selected by the European Commission as part of the European Clean Hydrogen Partnership. As from 2026, this unprecedentedly large-scale project (10 MW of installed capacity) will be able to produce up to 4 t/day of green hydrogen in the North Sea off the port of Ostend (Belgium), which will be exported to shore by composite pipeline, compressed and delivered to customers.
Through these two pioneering projects in offshore hydrogen production, Lhyfe aims to validate the industrial solutions it will present in future calls for projects from various governments, to help achieve the target set by the European Commission under the REPowerEU plan of 10 million tonnes of green hydrogen produced in the European Union by 2030.
In this context, Lhyfe signed partnership agreements with wind farm developers and energy companies specialising in offshore such as Centrica and Capital Energy.
- In March 2023, Lhyfe and Centrica have agreed to jointly develop offshore renewable green hydrogen in the UK in a first for the country. Under the agreement, Lhyfe and Centrica will explore combining their expertise to collaborate on a pilot green hydrogen production site in the Southern North Sea.
- In June 2023, Lhyfe and Capital Energy, Spanish energy producer and distributor, have signed a collaboration agreement for the joint development of offshore renewable hydrogen projects in Spain and Portugal. Under the agreement, the two companies will work together to create hydrogen production sites at some of the offshore wind farm sites currently being developed by Capital Energy.
2023 half-year results
First-half income statement
|In thousands of Euros – IFRS||30/06/2023
|EBITDA||(15.3)||(6.3)||<td style=’border-top:none;border-left:none;border-bottom:solid #E4E4E4 1.5pt;border-right:solid #E4E4E4 1.5pt;padding:0in 0in 0in 0in;box-sizing: border-box;–tw-border-spacing-x: 0;–tw-border-spacing-y: 0;–tw-translate-x: 0;–tw-translate-y: 0;–tw-rotate: 0;–tw-skew-x: 0;–tw-skew-y: 0;–tw-scale-x: 1;–t|
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