Lhyfe: Green hydrogen producer Lhyfe goes public on the Paris stock exchange

(BFM Bourse) – Replacing gray hydrogen produced from fossil fuels with green hydrogen is the ambitious promise of Lhyfe, which will go public this Monday with the aim of developing the production of its production units and becoming a market leader. The first offers are higher compared to the introductory price set at the bottom of the range at €8.75.

Lhyfe managed to outsmart the elements and a market context that was fragile with inflation and geopolitical tensions to take the first steps in the stock market on Monday. Early quotes in the form of “share pledges” are encouraging with the stock up 1.01% at €8.889 around 10.30am.

The operation benefited from the support of leading French and international institutional investors, demonstrating their confidence in the Lhyfe model and growth prospects, the company explains in its press release published on Friday evening.

Despite the support of its investors, the IPO was not successful as the price was set at the end of the range between €8.75 and €11.75. But the deal is a done deal for management, who say they are “proud” to have managed to share this ambition with their new investors and “grateful” for their contribution to the success of this IPO on the regulated Euronext market in Paris. The company thus joins Haffner Energy, another player in the energy transformation, listed on the stock exchange last February.

110 million euros were collected

The group thus managed to raise 110 million euros, an amount that could be increased to 124 million euros if the over-allotment option is fully exercised. The funds raised during this IPO will enable the company to become “the independent European leader in onshore green hydrogen production”, building on 93 projects currently in the commercial sale phase. Founded in 2017 in Nantes, Lhyfe is a producer and supplier of renewable green hydrogen for mobility and industry. Green hydrogen produced by electrolysis of water is the mainstay of the energy transition. It plays a key role in reducing CO2 emissions and thus supports the decarbonisation of industry and mobility by replacing gray carbon hydrogen and fossil fuels.

The green hydrogen produced by Lhyfe comes from local and decentralized production units, where possible, in direct connection with renewable energy parks. It is sold directly to the end user, including mobility players (urban areas, transporters, logistics platforms, etc.) and producers of chemicals (ammonia and methanol production), steel or glass.

Presence in 10 countries

The company already operates in 10 countries (France, Germany, Belgium, the Netherlands, Denmark, Sweden, Finland, Norway, Spain and Portugal). In September 2021, it opened its first industrial site for the production of green hydrogen.

To date, Lhyfe has a commercial pipeline consisting of 93 projects, located in 11 countries, with production dates between 2022 and 2028. In addition, the group has been involved in a research program since 2019, which should lead to entering the test phase in real conditions of the world’s first floating electrolyser connected to a floating wind turbine at the beginning of the 2022 school year.

The management of Lhyfe aims to “establish itself as a major player in the decarbonisation of the heavy mobility and industrial sectors and to become the independent European leader in the green hydrogen market”. To this end, the Nantes start-up is developing “a strategy based on the rapid and massive deployment of offshore green hydrogen production plants with the aim of developing units that could reach several hundred MW after 2025”.

Based on 93 projects currently in the commercial phase, representing a total installed generation capacity of more than 4.8 GW (i.e. green hydrogen production of more than 1,615 tons/day), Lhyfe aims to have a total installed capacity of 55 MW by 2024 from offshore units only.

By 2026, a turnover of around 200 million euros is expected

Lhyfe aims to deploy a total installed capacity of 55 MW by 2024 and achieve a consolidated turnover of around €200 million in the 2026 financial year with a break-even Ebitda group, based on a total installed capacity of 200 MW.

By 2030, the company aims to become a key player in the green hydrogen production sector and more specifically to have a total installed capacity of more than 3 GW. In the long term, Lhyfe is targeting a group Ebitda margin above 30%.

Settlement and delivery of the shares will take place the following day, i.e. May 24. Trading of the shares will begin on May 25, 2022 on the listed line called “Lhyfe”.

Sabrina Sadgui

©2023 BFM Bourse

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