Lhyfe's Offshore Hydrogen Project "Hope" Faces Relocation and Delay

Lhyfe, a French green hydrogen company, has announced that its "Hope" offshore hydrogen production pilot project will not be built in Belgium as originally planned, leading to significant delays. Chief executive Matthieu Guesne confirmed that the project, which had been scheduled for start-up in 2026, is now seeking a new location, specifically along the northern coast of Germany. A new timeline cannot be established until a suitable site is secured.

Reasons for Relocation

The primary reason for moving the project from Belgium is the country's permitting system, which Guesne cited as the main obstacle. He stated, "We couldn’t get all the conditions in Belgium for that project to be down there." This decision comes despite the Belgian government offering €13 million ($15.2 million) in subsidies in 2023, with an additional €20 million pledged by the European Union via Horizon Europe.

Funding and Future Strategy

Guesne indicated that while the German government could potentially replace the Belgian contribution, this is not essential for the project's viability. If additional subsidies are not secured, Lhyfe's strategy would involve sharing costs with another industrial partner rather than bearing the expense alone. This approach reflects the company's flexibility in financing the pilot.

Background and Project Scope

The Hope project was conceived three years ago as a more advanced follow-up to Lhyfe's first offshore hydrogen production pilot, the 1 MW "Sealhyfe" facility, which operated successfully in the Bay of Biscay for six months in 2023. Sealhyfe demonstrated performance comparable to an equivalent onshore facility. In contrast, Hope was designed not only to produce hydrogen at sea for a longer two-year period but also to test the export of hydrogen back to shore via pipeline, marking a key step in offshore hydrogen infrastructure development.