Messer will acquire 30% of four Lhyfe plants and will purchase renewable hydrogen from 2026 to supply European industrial customers.
Lhyfe and Messer signed a commercial, industrial and financial alliance that combines a 10-year renewable hydrogen supply contract with Messer’s entry into the capital of four plants located in France and Germany.
Under the announced terms, the German industrial gases specialist will acquire a 30% stake in the company that owns the assets. Lhyfe will retain majority control and continue to operate the facilities.
The agreement will allow the French producer to improve the visibility of its revenue and free up resources for projects further along in their commercial development. For Messer, the deal guarantees long-term access to renewable hydrogen produced at various locations in Europe.
Hydrogen supplies will begin in 2026
The contract covers three French plants and one German facility; Messer will assume a minimum purchase commitment from 2026 and volumes will gradually increase to several hundred tons per year.
Furthermore, the German company plans to acquire approximately half of the production from the three plants located in France. Part of the supply will be certified as RFNBO, the European designation applied to renewable fuels of non-biological origin.
This scheme offers Lhyfe a stable demand for part of its production capacity, while at the same time allowing Messer to incorporate renewable hydrogen into its supply of industrial gases to serve decarbonization projects in energy-intensive sectors.
Messer acquires a stake in four European plants
The 30% stake broadens the scope of the agreement beyond a conventional producer-buyer relationship. Messer becomes an industrial partner and investor in the assets, while Lhyfe retains operational management and the consolidation of the owning company.
Messer’s investment also brings expertise in safety, logistics, gas handling, distribution, and serving industrial customers. These capabilities can facilitate the plants’ business growth and improve their integration into European supply chains.
The company brings its expertise in permitting, financing, construction, and operation of electrolysis plants. The combination of these skills aims to increase asset utilization and expand access to green hydrogen in France and Germany.
The transaction improves Lhyfe’s financial visibility
For Lhyfe, the partial sale represents its first capital rotation; this model allows it to recover part of the investment made in already developed assets without giving up operational control or its growth potential.
The revenue generated from the 10-year contract and the minimum purchase commitment will provide greater predictability to the group’s cash flows. Likewise, Lhyfe will continue to charge for the operation and management services provided to the company that owns the plants.
The funds raised can be concentrated on advanced, commercially viable projects with the capacity to generate value. The company thus maintains its strategy as a developer and operator of renewable hydrogen infrastructure.
The alliance seeks to reduce logistical distances and emissions
For Messer, having production distributed between France and Germany will allow them to bring supplies closer to industrial consumers. A geographically diversified network can reduce transport distances, improve security of supply, and limit emissions related to logistics.
The company will integrate renewable hydrogen into its multi-gas portfolio to serve both current and new customers. The goal is to meet the demand from industries seeking to replace fossil fuels or carbon-intensive raw materials.
The transaction is subject to lender approval and is expected to close in the coming months. Once finalized, Lhyfe will retain majority ownership and exclusive operation of the four plants.
Source and photos: Newsroom.messergroup
