McPhy takes FID on electrolyser gigafactory in France

French hydrogen equipment specialist McPhy Energy SA (EPA:MCPHY) said on Wednesday that is has taken the final investment decision (FID) to build an alkaline electrolyser gigafactory in Belfort, France, and turn it into a facility with an annual production capacity of 1 GW following a gradual ramp-up.

The gigafactory proposal was among those selected to receive public support under the Important Projects of Common European Interest (IPCEI) programme for hydrogen in July.

Of the total state aid pot, McPhy is entitled to receive up to EUR 114 million (USD 113m) from the French government. The company said it had signed a contract with French public investment bank Bpifrance to obtain the funds, and it would receive an initial payment of EUR 28.5 million by the end of 2022.

The remainder will be distributed in the form of reimbursements of expenses incurred once McPhy reaches certain milestones.

McPhy expects to spend EUR 9 million by the end of the year to purchase the land and begin construction.

“This is an inspiring project for the entire McPhy team, with 20,000 sqm dedicated to the manufacture and testing of multi-MW electrolyzers,” Antoine Ressicaud, McPhy’s chief operating officer, said.

The Belfort factory is scheduled to start operations from the first half of 2024.

(EUR 1.0 = USD 0.991)

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