French renewable hydrogen producer Lhyfe raises €10M from Japanese conglomerate Mitsui & Co.

Nantes, France-based Lhyfe, a developer, investor, and supplier of 100 per cent green hydrogen for mobility and industry, announced that it has raised €10M in from Japanese conglomerate Mitsui & Co.

Lhyfe’s founding president Matthieu Guesné says, “We are very proud to welcome such an important player as Mitsui as our first international partner. This partnership further confirms the interest of the market in our renewable green hydrogen. This agreement with Mitsui will give an important boost to our development in strategic markets internationally, to decarbonise transportation and industry quickly and on a massive scale.”

Mitsui’s investment follows Lhyfe’s 2021 fundraise of €66M from Andera Partners, Swen Capital, CDC Banque des Territoires, and several of its original shareholders. It reflects the rapid growth  Lhyfe has experienced since its launch.

The role of BNP Paribas in the funding

Lhyfe benefited from the support of BNP Paribas, which acted as its financial advisor for the fundraising. A founding member of the Hydrogen Council, BNP Paribas has created a Low Carbon Transition group, a global CEO-led initiative of 132 leading energy, transport, industry, and investment companies with a united and long-term vision to develop the hydrogen economy.

BNP Paribas works actively to contribute to the establishment of local ecosystems, bringing together all players in the hydrogen value chain, and sustainably supports its customers in the large-scale development of the sector.

How will Mitsui help Lhyfe?

Mitsui, as one of its portfolios, claims to have actively engaged in a wide spectrum of hydrogen-related business and made investments across the hydrogen value chain in various regions with the aim of contributing to building a responsible and low-carbon energy model.

Mitsui is also a member of the Hydrogen Council, a global organisation led by a number of leading companies in the fields of energy, transport, industry, and investment for the development of the hydrogen economy.

For the development of hydrogen, Mitsui has decided to invest in Lhyfe as a strategic investor and believes in the company and in its ability to deploy its solutions widely. Mitsui, by utilising its global network and assets around hydrogen-related businesses, intends to support Lhyfe in identifying commercial opportunities, enhancing Lhyfe’s competitiveness, and pursuing international expansion.

Hiroshi Kakiuchi, Managing Officer of Mitsui, says, “Lhyfe has developed unique expertise in renewable green hydrogen production, as well as an ability to create ecosystems and a strong vision for the future of the sector. We are very excited to work with Lhyfe to build local and virtuous ecosystems together.”

“Changing the Energy paradigm”

Founded in 2017 and led by Matthieu Guesne, Lhyfe claims to have developed the world’s first industrial site to produce renewable green hydrogen using power from wind turbines, which it inaugurated in 2021. 

Currently, the company is active in 10 countries in Europe, including France, Germany, Belgium, the Netherlands, Denmark, Sweden, Finland, Norway, Spain, and Portugal. The French company has a sales pipeline of over 90 projects spread across 11 countries and with production start dates between 2022 and 2028. Lhyfe’s target markets are transportation and industry.

Additionally, a development programme for offshore hydrogen production has been underway since 2019 and will see the world’s first offshore hydrogen production site connected to a floating wind turbine enter the test phase in the third quarter of 2022.

This pilot site, which will produce 400 kilos of renewable hydrogen per day, will confirm the company’s technological advance in offshore hydrogen production. Lhyfe will thus be the first operator in the world to have an onshore and offshore experience curve.