Plans for hydrogen firm Lhyfe's Wallsend factory move closer to fruition

Hydrogen fuel pioneer Lhyfe says it is very close to securing planning permissions to pave the way for a production plant on the banks of the Tyne.

The French firm says it is only a matter of weeks for proposals for a 20MW green hydrogen facility, on the site of the former Neptune Bank Power Station in Wallsend, North Tyneside, to be decided. Plans for the scheme were submitted last year, along with an application for subsidy, with Lhyfe learning in recent days that the Wallsend project has been selected for the next stage of the Government’s Second Hydrogen Allocation Round (HAR2).

"Having the scale of ambition set is a big vote of confidence for hydrogen in the UK, and what this Government wants to do in terms of decarbonisation and net zero," said Boris Davis, head of UK business development at Lhyfe.

"We are trailblazers in France, in Germany and we did the world's first green hydrogen production on a commercial level - allowing green hydrogen to be accessed by multiple customers - and we did the world's first offshore hydrogen production. We've got development across most of northern and western European, and a lot of that is engaging with governments on helping them understand the role for hydrogen within their decarbonisation strategies."

Having waited for the delayed HAR2 shortlist, Lhyfe will now go through a due diligence process with the Department of Net Zero and Energy Security before a final determination is made and then a negotiation over the strike price to determine the level of subsidy.

Lhyfe came to the UK, and the North East, in the wake of the Boris Johnson Government's introduction of a hydrogen subsidy scheme. It says the Wallsend scheme is among its most advanced, with the company having identified nearby energy-intensive industrial customers who could make the switch to hydrogen.

Mr Davis said: "The scale of the project is what we feel is right for the demand for hydrogen within the region. All of our offtake is within a pretty small radius of the site - we're not going to be taking hydrogen to Wales for example. It's going to be made on Tyneside and it'll stay on Tyneside.

"The offtakers we have for both projects [including Lhyfe's Kent scheme] are either using it to swap out their natural gas; swap out their grey hydrogen - which is made from natural gas; or swap out their diesel. As we look to the future, hydrogen is a really important feedstock for future fuels such as sustainable aviation fuel and for things like methanol - and what we call e-methanol, which is made from renewable hydrogen and CO2 which can be used in things like shipping.