French green hydrogen producer Lhyfe has announced that two of its planned production projects—located in Wallsend (North Tyneside) and Kemsley (Kent)—have been shortlisted in government-led auctions in the UK.
As a result, Lhyfe has been selected as part of the UK’s Hydrogen Allocation Round 2 (HAR2). This funding mechanism guarantees a fixed price for the hydrogen produced over the long term, providing greater financial security for large-scale hydrogen developments.
The first project, in Kemsley, will have a capacity of 80 MW and aims to produce up to 32 tonnes of green hydrogen per day, primarily for an industrial user in the region. The second project, located in Wallsend on the historic site of the Neptune Bank power station, will have a capacity of 20 MW and is expected to generate up to 8 tonnes of green hydrogen per day.
“This demonstrates the UK Government’s confidence in Lhyfe’s ability to quickly develop and operate large-scale production sites to meet national demand,” said Boris Davis, Lhyfe’s UK Business Development Manager. “We look forward to working with the Department for Energy Security and Net Zero (DESNZ) to move swiftly to the next stage and ultimately commission our facilities.”
Active in the UK since 2022 with offices in Newcastle, Lhyfe aims to become a key player in decarbonisation. The company is also exploring offshore hydrogen production, leveraging the UK’s vast offshore wind resources.
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