McPhy – launch of the gigafactory of McPhy electrolyzers on the belfort site.
McPhy Energy, a specialist in low-carbon hydrogen production and distribution equipment (electrolysers and charging stations), announces the final investment decision of its Gigafactory of electrolysers on the Belfort site by its Board of Directors on October 26.
This approval was followed by the signature with Bpifrance of a public aid contract by the French State of up to €114 million for the Gigafactory as part of the PIIEC scheme(1). The eligibility of the McPhy project for this scheme was validated by the European Commission last July.
Jean-Baptiste Lucas, Chief Executive Officer of McPhy, commented:
We are very pleased with the decision of our Board of Directors, which concludes positively the various positive opinions received recently on our Gigafactory project.
“The latter will be a decisive tool in the development and design of large electrolysers, essential for the use of green hydrogen in ambitious projects to decarbonize industry and heavy mobility. We will soon have an industrial device capable of mass-producing a wide range of electrolysers on a continental scale that is unparalleled among other players in carbon-free electrolysis in Europe. »
Antoine Ressicaud, Director of Operations at McPhy, comments:
This is an exciting project for all McPhy teams, with 20,000 m2 dedicated to the manufacture and testing of multi-MW electrolyzers.
“Our desire is to implement the highest standards of industrial performance on this Belfort site, in an ambitious social and environmental approach.”
The commissioning of the future plant on the Belfort site is scheduled from the 1st half of 2024, with a gradual ramp-up with the aim of reaching an annual production capacity of 1 GW. The McPhy Group will thus have a total annual production capacity of 1.3 GW(2), including the capacity of the San Miniato site in Italy, in line with the growth prospects of the green hydrogen markets, particularly that of industry.
Public aid in stages with an initial payment from Bpifrance of €28.5 million by the end of 2022
The contract signed with Bpifrance specifies the modalities of implementation of the public aid. McPhy will receive an initial payment of €28.5 million by December 31, 2022.
Subsequent payments will take the form of reimbursements of expenses incurred under the terms of the contract, following the satisfactory completion of defined milestones, for a total amount, including initial payment, of up to €114 million.
A strategic tool at the service of McPhy’s technological and industrial ambitions With this Gigafactory, McPhy pursues 3 objectives:
- Innovation: through the development of new generation alkaline electrolyzers, both in size, components and integration within modules;
- Industrialization: with large-scale production to meet the needs of the European market in particular, to contribute to the decarbonization of industry, mobility and energy;
- Collaboration: with the many partners of the Hydrogen ecosystem in Europe and the dissemination of knowledge with academic, industrial and research stakeholders.
The future Belfort plant will host new developments and the production of large electrolysers from the “Augmented McLyzer” range, a real technological breakthrough, making it possible to equip architectures of 20, 100 MW and beyond (GW) with an output pressure of 30 bar.
This large-scale R&D and industrialization effort will provide the sector with devices capable of producing hydrogen from renewable energies at a competitive cost compared to alternatives using carbon-based energies.
The Gigafactory will complete McPhy’s industrial set-up with, on the electrolyzer part, the ongoing automation of the San Miniato site, dedicated to the production of electrolysers up to 1 MW of capacity and, on the station part, the brand new Grenoble site.
At the same time, the location in Belfort at the crossroads of many European countries, with a real research and development ecosystem dedicated to innovation and hydrogen, will promote the multiplication of potential industrial and commercial partnerships.
Acceleration of investments and development costs from the second half of 2022
The start of construction and the purchase of the land will result in a disbursement linked to the Gigafactory to the tune of €9 million by the end of the financial year.
In addition, and as previously indicated, McPhy intends to make new investments in order to be able to meet the growing demand for large equipment and facilities, by increasing its R&D resources and strengthening its project and service teams.
These efforts, implemented immediately, will result in additional expenses in the second half of 2022 and should bring cash at year-end to a level comparable to that at the end of the first half, taking into account the initial payment from Bpifrance and disbursements related to the Gigafactory.
Highlights:
- Industrial device dedicated to electrolysers without equivalent in Europe;
- Commissioning scheduled for the 1st half of 2024, with a gradual ramp-up with the aim of reaching an annual production capacity of 1 GW;
- Final investment decision taken by McPhy’s Board of Directors;
- Public aid contract signed with Bpifrance for a maximum amount of €114 million, with a 1st payment of €28.5 million;
- Induced acceleration of investments and development expenses with an impact on the financial performance of the second half of 2022.
READ the latest news shaping the hydrogen market at Hydrogen Central
Launch of the McPhy electrolyzer gigafactory at the Belfort site, Grenoble, November 2, 2022
