French green hydrogen producer Lhyfe launches IPO

FRANCE. On Monday 9 May 2022, Lhyfe announced the launch of its initial public offering on Euronext in Paris. Based in Nantes, the French hydrogen producer hopes to raise around €110m through a capital increase with an estimated price range of €8.75 to €11.75 per share, a statement said. It has already received between €32 and €39 million in subscription commitments.

Lhyfe has just signed a collaboration agreement for the development of green hydrogen production projects with Portuguese EDP Renewables Europe. The 100% subsidiary of EDP Renováveis will subscribe to its capital increase for €25 million. The remainder of the €32-39m will come from financial investors CDC Croissance (a fund of the French Caisse des Dépôts) and Amundsen Investment Management (an independent investment company based in Paris and Oslo).

The amount raised "may be increased to a maximum of €145.5 million if the extension clause and the over-allotment option are exercised in full", the statement said.

The subscription period starts on Monday 9 May 2022 and ends on 20 May 2022. This transaction, approved on May 6, 2022 by the Autorité des marchés financiers (AMF), completes the last capital increase carried out in 2021/2022 for approximately €76 million, of which approximately €47.8 million will be converted into shares at the time of the effective listing. The capital increase would then reach a maximum of €193.3 million.
 

"Replacing grey hydrogen, produced from fossil fuels, with green hydrogen is one of the keys to the energy transition. Thanks to the green hydrogen produced by Lhyfe, we are supporting the decarbonisation of industry, reducing C02 emissions from transport and helping to strengthen Europe's energy independence," comments Matthieu Guesné, CEO of Lhyfe. This former director of CEA Tech Pays de la Loire and Brittany, and founder of the company, stresses that "the demand for green hydrogen should increase significantly over the next few years and we have the ambition to make Lhyfe one of the leaders in green hydrogen production in Europe." 

According to a report published in October 2021 by the International Energy Agency (IEA), this demand is expected to increase sixfold between 2020 and 2050 to represent 530 million tonnes, while at the same time green hydrogen is expected to provide 60% of the total hydrogen demand. On 5 May 2022, the European Commission and twenty CEOs of electrolyser companies ratified an agreement to increase electrolyser production capacity in the European Union tenfold.
 

Created in 2017 and operational since September 2021 with the opening, in Bouin in the Vendée, of the first industrial site in the world directly connected to a wind farm and a seawater supply enabling electrolysis, Lhyfe's ambition is to become "a European leader in green hydrogen production". 

"Several major international companies such as Wpd, Mitsui, Plug Power and now EDPR have chosen to join forces with Lhyfe to accelerate the development of green hydrogen," says Matthieu Guesné. The producer (82 employees) will have more than 4.8 gigawatts of total installed capacity on the Old Continent, thanks to ninety-three projects in ten countries that will enable the production of more than 1,600 tonnes per day by 2028. Twenty are currently in the advanced development stage with a total capacity of 380.5 MW and are expected to come on stream between 2023 and 2026.

Green hydrogen is made from the electrolysis of water, a process that splits the hydrogen and oxygen atoms in the water molecule using electricity. Consumed in large quantities in industry, it can also be used as a clean transport fuel.