Lhyfe and Source Galileo have signed a memorandum of understanding (MoU) to develop commercial-scale green and renewable hydrogen production units in the UK and Ireland.
Under the agreement, the companies will combine their expertise to generate and supply the environmentally-friendly gas to a variety of customers across industry and transport, helping them decarbonise their operations.
The partnership will see Lhyfe and Source Galileo collaborate to establish commercial-scale green hydrogen production sites in the UK, with plans already underway for multiple units.
The energy firms are also exploring opportunities in Ireland, focusing on identifying consumers and assessing factors such as grid availability, power supply, land accessibility, and planning requirements.
By working together, Lhyfe and Source Galileo said their economies of scale can accelerate the roll-out of green hydrogen, meeting the increasing demand from companies aiming to reduce their reliance on natural gas and other fossil fuels.
Initially, the companies will focus on using electricity from onshore renewables.
However, in the longer term, the pair could harness the enormous offshore wind potential in the UK and Ireland, which would help overcome electricity grid constraints, they added.
Source Galileo chief executive Kevin Lynch said: “We believe the development of a hydrogen economy alongside electricity is critical to the energy transition.
“Both the UK and Ireland have hydrogen strategies.
“The UK has committed to deploying 50GW of offshore wind by 2030, and Ireland is expected to develop at least 20GW of offshore wind by 2040, with an initial target of 2GW of hydrogen production from offshore wind by 2030.
“Our partnership with Lhyfe provides an onshore and offshore platform and a major step forward from which to assist in delivering government hydrogen targets.”Chief business officer at Lhyfe Taia Kronborg added: “We are pleased to announce this agreement with Source Galileo, which represents an exciting opportunity to drive forward the clean energy transition with large-scale green hydrogen production.
“At Lhyfe, we are moving at pace to enable decarbonisation in our communities and unleash the extraordinary potential of renewable energy across the UK and Ireland.
“Green hydrogen is one of the key solutions to reaching net zero, and the good news is it is available to be deployed today, improving national energy security while turbo-charging local economies.”