McPhy Energy announced the final investment decision for its Gigafactory of electrolyzers on the Belfort site.
This approval was followed by the signing with Bpifrance of the contract on state aid by the French government, up to € 114 million for the Gigafactory within the framework of the PIIEC scheme1. The eligibility of McPhy’s project to this scheme was approved by the European Commission last July.
The commissioning of the future plant on the Belfort site is scheduled for the 1st half of 2024, with a gradual ramp-up aimed at reaching an annual production capacity of 1 GW. The McPhy Group will then have a total annual production capacity of 1.3 GW2, including the capacity of the San Miniato site in Italy, in line with the growth prospects of the green hydrogen markets, particularly in industry.
A phased public aid with an initial payment from Bpifrance of 28.5 million euros by the end of 2022
The contract signed with Bpifrance provides the terms and conditions for implementing public aid. McPhy will receive, by 31st December 2022, an initial payment of 28.5 million euros. Subsequent payments will take the form of reimbursements of expenses incurred, under the terms of the contract, following the satisfactory achievement of defined milestones, for a total amount, including the initial payment, of up to 114 million euros.
The future plant in Belfort will host new developments and production of the large electrolyzers in the “Augmented McLyzer” range, a real technological breakthrough, enabling 20, 100 MW and beyond (GW) architectures to be equipped with an output pressure of 30 bar. This large-scale R&D and industrialization effort will provide the industry with equipment capable of producing hydrogen from renewable energies at a competitive cost compared to alternatives using carbon energy.
The Gigafactory will further strengthen McPhy’s industrial set-up with, on the one hand, the electrolyzers with the ongoing automation of the San Miniato site, dedicated to the production of electrolyzers of up to 1 MW capacity and, on the other hand, the stations, on the brand-new site in Grenoble.
The beginning of the construction and the land purchase will result in a cash outflow related to the Gigafactory of 9 million euros by the end of the year.
Jean-Baptiste Lucas, CEO of McPhy, said, “This Gigafactory will be a decisive tool in the development and design of large-scale electrolyzers, which are essential for the use of green hydrogen in ambitious decarbonization projects for industry and heavy mobility.”
Antoine Ressicaud, COO of McPhy, says: “This is an inspiring project for the entire McPhy team, with 20,000 sqm dedicated to the manufacture and testing of multi-MW electrolyzers.”