Capital Energy and Lhyfe are partnering to generate offshore green hydrogen associated with offshore wind farms in Spain and Portugal

They will build plants at some of the sites where Capital Energy, which now has a portfolio of more than 7.5 GW, is developing offshore wind farms

• The partnership agreement entered into between Capital Energy and Lhyfe could be extended to other markets in years to come 
• Lhyfe is one of the pioneering companies in generating green hydrogen, which already has an offshore production prototype in operation in France

Madrid (Spain) and Nantes (France), 12 June 2023 – 7.30 am CEST. Capital Energy, a Spanish energy company founded over two decades ago and whose aim is to become the Iberian Peninsula’s first vertically integrated, fully renewable energy operator, and Lhyfe, one of the world forerunners in green hydrogen production and offshore hydrogen, generation projects, have signed a partnership agreement intended to jointly develop marine renewable hydrogen projects in Spain and Portugal.

Under the terms of the agreement, the two companies will build offshore hydrogen production plants at certain locations where Capital Energy, which already has a development pipeline of upwards of 7.5 gigawatts (GW) in these two countries, is developing offshore wind farms.

The joint installation of offshore wind farms and offshore hydrogen plants would bring environmental benefits to both Lhyfe and Capital Energy, since two key vectors for further progress in the energy transition would be mutually beneficial; economic benefits, by taking advantage of economies of scale; and social benefits, by boosting the industrial tractor effect of the projects, given that they will require a greater number and variety of suppliers and professionals.

These projects would also be beneficial to the energy system as a whole, given that the wind energy generated at these wind farms would be manageable, thus avoiding curtailments. For instance, in the event of grid congestion, less energy could be sent to the grid and more to the hydrogen plant, to which part of the wind turbines would be directly connected.

This agreement entered into between Capital Energy and Lhyfe could be extended to other markets in years to come.

Lhyfe is the world’s only company that already has a working prototype marine green hydrogen plant, Sealhyfe, which was launched in France in September 2022. The company intends to have 200 megawatts (MW) of green hydrogen production in operation by year-end 2026 and 3 gigawatts (GW) by year-end 2030. Lhyfe has projects in 11 countries and employs more than 149 people dedicated 100% to the production of renewable hydrogen.

Pablo Alcón, Head of Offshore at Capital Energy, said: “We have been committed to green hydrogen in the Iberian Peninsula for years now and it was time to take the leap out to sea, for which we have teamed up with the best possible partner, Lhyfe, which has a wealth of experience in offshore hydrogen generation. This partnership will help us to use part of the energy from our offshore wind farms to produce hydrogen, which will contribute to boosting the energy transition in a balanced way and solve possible bottlenecks in the electricity grid. Furthermore, the socio-economic benefit of our offshore projects will grow by undertaking larger investments and generating a greater number of skilled jobs.”

According to Frans Pieter Lindeboom, Lhyfe’s Country Manager for Spain, “this agreement with Capital Energy provides an exciting opportunity to drive the transition to clean energy through the large-scale production of environmentally friendly offshore hydrogen. H2 production through offshore electrolysis will capitalise on the huge potential of offshore wind energy in Spain and Portugal. These countries can become world leaders in green, renewable hydrogen production, breaking away from their dependence on fossil fuels and improving their domestic energy security, while providing zero net emissions and boosting local economies.”