Lhyfe and Capital Energy have signed a collaboration agreement to develop offshore renewable hydrogen projects in Spain and Portugal.

The agreement entails the establishment of hydrogen production sites at offshore wind farm locations being developed by Capital Energy – the company already has a pipeline of over 7.5GW in both countries.

Partners believe that these initiatives enhance the energy system by improving control over wind energy production, reducing curtailments and allowing for flexible allocation of power to the hydrogen production unit during grid congestion.

Pablo Alcón, Offshore Director at Capital Energy, sees the collaboration as a step toward offshore hydrogen production, driving the energy transition and resolving grid bottlenecks.

Taia Kronborg, Chief Business Officer at Lhyfe, has highlighted the potential for offshore green hydrogen production to reduce reliance on fossil fuels, enhance energy security and stimulate local economies.