Lhyfe has revealed plans to reduce its energy consumption at its French green hydrogen plants during periods of high electricity demand to reduce the load on the country’s grid, while also reducing its costs.
The French project developer has partnered with energy management firm Energy Pool to work on electricity demand response mechanisms at its three hydrogen production sites in Buléon, Bessières and Le Cheylas, with a combined 30MW of electrolyser capacity.
Set to initially engage in the wholesale electricity market (NEBEF), the company will be able to adjust its energy consumption based on demand and supply dynamics – allowing it to cut costs by reducing consumption during peak demand times.
From there, Lhyfe plans to move into the secondary reserve market, which requires users to respond quickly to grid signals to help stabilise it in real-time.
Expected to start in 2025 for five years, the company said the partnership could also help reduce green hydrogen prices.
As renewable sources like wind and solar are variable, balancing grid supply and demand becomes more complex. Having set its focus on using PEM electrolysers, the French firm says it will be able to operate flexibly, adjusting to power usage instantly.
And by reducing its power consumption at key times, Lhyfe not only hopes to support grid stability but also to help prevent the need for carbon-intensive backup power sources
“This initiative is part of a wider drive to transform the hydrogen industry, which is now positioned as a pillar of energy transition,” Lhyfe said. “By integrating grid balancing into its business model, Lhyfe is contributing to grid stability while exploring additional cost-cutting avenues.”
Maximising the potential of renewable energy: Direct electricity vs hydrogen production
As the world confronts the climate crisis and seeks ways to effectively transition from fossil fuels to renewable energy, a central question arises: How should we best utilise electricity generated from wind and solar resources?
Should the power from these clean energy sources be injected directly into the grid for immediate use or converted into hydrogen for energy storage and consumption across multiple applications? Both approaches come with distinct advantages and challenges…
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