In France: Lhyfe and Elyse Energy plan to use renewable green hydrogen to produce e-methanol

Lhyfe and Elyse Energy plan to produce e-methanol from renewable green hydrogen

Lhyfe, one of the world’s pioneers in the production of green and renewable hydrogen, and Elyse Energy, a European specialist in the production of low-carbon molecules, have announced that they plan to jointly develop the production of e-methanol from green renewable hydrogen at the heart of the Loire estuary’s industrial and logistics port ecosystem. This project, known as Green Coast, is of major importance for the area and for the entire maritime transport sector, which is seeking to achieve decarbonisation.

Nantes Saint-Nazaire Port has been committed for several years to decarbonising its activities, which are still heavily dependent on fossil fuels. This transition to energies that are more respectful of the climate and the environment has become a requirement for competitiveness, and even survival, for European ports. This ambition is supported at all levels, in particular by the Pays de la Loire Region and the Saint-Nazaire Agglomération urban community, which are actively supporting the transition underway in the Nantes Saint-Nazaire industrial port area.

Decarbonisation is stimulating the emergence of a new industrial fabric in the region, with European-scale projects creating new long-term jobs linked to these sectors. The Loire Estuaire Décarbonation ZIBaC programme will ensure consistency and the development of strong industrial synergies between the various decarbonisation projects in the estuary area.

In late 2023, Nantes Saint-Nazaire Port selected Lhyfe to set up an industrial production and distribution operation for green hydrogen. At the time, Lhyfe presented its plans to build an industrial unit with a renewable green hydrogen production capacity of up to 85 tonnes per day (installed electrolysis capacity of 210 MW), in Montoir-de-Bretagne, to the north of the Multivrac terminal, by 2028.

Elyse Energy has positioned itself to produce renewable fuel in the industrial port zone. A synergy between these two project leaders led to the signing of an exclusive agreement to study the feasibility of producing e-methanol from Lhyfe’s green hydrogen, to decarbonise maritime transport. The rest of the production would be used to decarbonise mobility and local industry.

This project, called Green Coast, will be located at the Montoir-de-Bretagne industrial port hub, near the quayside. Elyse plans to produce 150,000 tonnes of e-methanol a year at the site.

Green Coast, which fits in fully with the local industrial context, is part of the Loire Estuaire Décarbonation initiative, supported by France 2030 via the Low Carbon Industrial Zone or ZIBaC call for projects, and led by ADELE, which includes Saint-Nazaire Agglomération, the Estuaire & Sillon association of municipalities, the Pays de la Loire Region, Nantes Saint-Nazaire Port and the Association des Industriels Loire Estuaire (AILE).

The project is currently under development and is subject to the granting of operating licenses, building permits and financial investment decisions. The conclusions of the initial studies will be communicated in 2025.

Decarbonising maritime transport is a key challenge for achieving the dual objective of carbon neutrality and an exit from fossil fuels. The shipping sector, which handles 80% of world trade, accounts for 14% of CO2 emissions from transport in Europe and is firmly committed to decarbonisation, with several sustainable options for ship propulsion.

Renewable green renewable hydrogen: more than 95% of the hydrogen produced today – so-called “grey” hydrogen – is derived from fossil fuels. Renewable green hydrogen, which is beginning to develop, is produced by the electrolysis of water and therefore requires two components: water and renewable electricity.

Its production emits very little CO2. When this hydrogen is used, the water molecule reforms, emitting only water vapour. Lhyfe, a world pioneer in this technology, has been producing green hydrogen since 2021 and is encouraging the development of a virtuous value chain.

Methanol, which is the most basic alcohol and a liquid at atmospheric pressure, is a molecule used in the manufacturing processes of many everyday products, such as cosmetics, medicines, resins, plastics, paints etc. Although methanol is currently produced almost exclusively from coal and natural gas, low-carbon alternatives have been emerging for several years, in particular e-methanol produced from hydrogen.

The production of e-methanol involves using low-carbon hydrogen produced by electrolysis of water and carbon recycled from industrial processes. Elyse Energy is one of Europe’s leading players in e-fuels.

Although e-methanol production is currently limited to a few thousand tonnes a year in Iceland, the sector is developing rapidly, with nearly 60 major industrial projects under construction around the world, notably in China, Sweden, Denmark, North America and France.

France has two major competitive advantages to support the emergence of e-methanol and turn it into a significant green reindustrialization opportunity – a low-carbon electricity mix and integrated chemical platforms capable of providing the necessary skills and infrastructure. With nearly 600,000 tonnes of fossil methanol imported each year by French manufacturers, and growing demand from major players in the maritime sector for methanol-powered ships, e-methanol offers an opportunity to repatriate production while helping to establish a French industry of excellence.

“This is what we want to achieve tomorrow, together with our industrial and port partners, by responding to the Low Carbon Industrial Zone challenge,”

“The decarbonization of our territory, particularly seaport activities, is a lever for attractiveness, industrial dynamism, and development for our region. As President of the Supervisory Board of the Grand Port and President of the Region, I am particularly proud to be able to count on regional gems like Lhyfe – alongside the Lyon-based company Elyse – to bring an innovative solution for maritime decarbonization,” said Christelle Morançais, President of the Pays de la Loire Region.

“Our public-private collective is determined to pursue the ambition of achieving carbon neutrality by 2050. This project is a testament to the commitment of our companies to ecology, recognizing that they are moving forward to meet the challenges of innovation, green technologies, and progress to create decarbonized sectors that will make the Pays de la Loire attractive tomorrow.”

“Climate change is the challenge of the century. Scientists keep reminding us of this, report after report. The path is both simple and ambitious. To limit its effects and scale, we need to decarbonise all industries, and we need to do it now. We decided to create Elyse to be part of this fight,” said Pascal Penicaud, CEO of Elyse Energy.

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