French green hydrogen producer Lhyfe has revealed its plan to co-develop large-scale projects in partnership with investors, aiming to secure agreements for 1GW of projects by the end of this year.


Source: Lhyfe

Under this strategy, Lhyfe intends to collaborate with one or more companies, allowing them to hold ownership stakes of up to 100% in the projects. Lhyfe will generate revenue through fees associated with project development and ongoing asset management post-construction. At the same time, the company will continue developing its own projects, with approximately 20% of its envisioned 3GW portfolio by 2030 expected to be fully owned by Lhyfe.

Currently, Lhyfe is engaged in the joint development of the Åland Energy Island project in Finland, alongside Copenhagen Infrastructure Partners and Flexens. This initiative aims to establish offshore wind farms at a gigawatt scale to facilitate electrolysis.

Lhyfe anticipates that its “hydrogen-as-a-service” model will not only lead to a fourfold increase in revenue compared to its reported €1.3 million in 2023 (which had already doubled from the previous year) but also accelerate its break-even timeline.

Previously projected for 2026 with €200 million in revenue, Lhyfe now expects to break even earlier, forecasting €10 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) from €100 million in revenue for 2026, according to its annual report for 2023. The company also aims for EBITDA margins exceeding 30% by 2030.

Despite reporting a negative EBITDA of €28.1 million for 2023 and a consolidated net loss of €33.6 million—€7.8 million deeper than in 2022—Lhyfe remains confident in its financial position. With €114.3 million in available cash, the company believes its balance sheet can support its short-term growth objectives.

Lhyfe has secured up to €238 million in grants from the EU and Spanish governments and finalised a €28 million green syndicated loan with existing banking partners at the close of the previous year.