- The establishment of factories dedicated to electrolyzers without equal in Europe;
- Authorization is scheduled for 1St half of 2024, with a gradual ramp-up to reach an annual production capacity of 1 GW;
- Final investment decision taken by McPhy’s Board of Directors;
- A public assistance contract signed with Bpifrance up to a large amount of 114 million euros, with
1St a payment of 28.5 million euros;
- Acceleration of investment development and costs impacting financial performance in the second half of 2022.
Grenoble, France, November 2, 2022 at 7:45 am CET – McPhy Energyspecialized in low carbon hydrogen production and distribution equipment (electrolyzers and refueling stations), announces the final decision to invest in its Gigafactory of electrolyzers at the Belfort site by its Board of Directors on October 26. This approval was followed by signing with Bpifrance a contract for public assistance by the French government, up to 114 million euros for the Gigafactory within the framework of the PIIEC scheme1. The eligibility of the McPhy project for this scheme was approved by the European Commission last July.
Jean-Baptiste Lucas, Chief Executive Officer of McPhy, commented: “We are very happy with the decision of our Board of Directors, which is a good decision in the various announcements we have received recently regarding our Gigafactory project. This Gigafactory will be an important tool in the development and design of large electrolyzers, which are necessary to use green hydrogen in ambitious decarbonization projects in industries and heavy traffic. Soon we will have an industrial set-up capable of producing a large number of electrolyzers on a continental scale, unmatched by any other player in decarbonized electrolysis in Europe..”
Antoine Ressicaud, McPhy’s Chief Operating Officer, 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. Our desire is to achieve the highest standards of industrial performance in this Belfort facility, in an ambitious social and environmental way.”
Commissioning of the future plant at the Belfort site is scheduled from 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 GW2including the capacity of the San Miniato area in Italy, in line with the expected growth of the green hydrogen market, especially in the industry.
Public assistance in stages with the first payment from Bpifrance of 28.5 million euros at the end of 2022.
The contract signed with Bpifrance provides the terms and conditions for the implementation of the humanitarian aid. McPhy will receive on December 31, 2022 a first payment of 28.5 million euros. Subsequent payments will take the form of reimbursement of costs incurred, in accordance with the terms of the contract, following the satisfactory achievement of the specified events, in the total amount, including the initial payment, up to 114 million euros.
A strategic tool for McPhy’s technological and industrial ambitions
With this Gigafactory, McPhy is pursuing 3 goals:
- Innovation: for the development of a new generation of alkaline electrolyzers, in terms of size, components and integration within the modules;
- Doing business: with large production to meet the needs of the European market in particular, to contribute to the decarbonization of industry, mobility and energy;
- Cooperation: with many partners of the Hydrogen ecosystem in Europe and the dissemination of information with stakeholders in education, industry and research.
The future plant in Belfort will host the new development and production of large electrolyzers in the “Augmented McLyzer” range, a real technological breakthrough, which enables 20, 100 MW and more (GW) architectures equipped with a production pressure of 30 bar. This major effort of R & D and industrialization will provide the industry with equipment capable of producing hydrogen from renewable energy at a competitive price compared to other methods using carbon energy.
The Gigafactory will further strengthen McPhy’s industrial setup and, on the one hand, electrolyzers and continuous automation of the San Miniato site, dedicated to the production of electrolyzers up to 1 MW capacity and, on the other hand, stations. , in a brand new location in Grenoble.
At the same time, Belfort’s location at the crossroads of many European countries, with a real research and development ecosystem dedicated to innovation and hydrogen, will encourage the multiplication of potential business and commercial relationships.
Accelerating development investment and spending from the second half of 2022
The start of construction and the purchase of land will result in an outflow of money related to the Gigafactory of 9 million euros by the end of the year. In addition, and as previously indicated, McPhy intends to make additional investments to be able to meet the growing demand for large equipment and facilities, by expanding R&D facilities and strengthening the project and service teams. These efforts, which are currently being implemented, will result in additional costs in the second half of 2022 and are expected to lead the financial position at the end of the year to a level comparable to the end of the first half, taking into account the Gigafactory-related First payment of Bpifrance and cash flow.
Specializing in hydrogen production and distribution equipment, McPhy contributes to the distribution of low carbon hydrogen as an energy transition solution. With its full range of products dedicated to industry, mobility and the energy sector, McPhy offers its customers turnkey solutions adapted to their applications in the supply of raw materials, charging of electric vehicles of fuel cells or storage and recovery of residual electricity based on renewable sources. As a designer, manufacturer and assembler of hydrogen equipment since 2008, McPhy has three centers for development, engineering and production in Europe (France, Italy, Germany). Its international subsidiaries provide a wide range of commercial hydrogen solutions. McPhy is listed on Euronext Paris (section B, ISIN code: FR0011742329, MCPHY).
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1 PIIEC (“An important project of the Intérêt Européen Commun “) or IPCEI (“An important project of common European interest“) is a funding program that supports projects considered important for European competitiveness, authorizing Member States to finance initiatives beyond the limits usually set by European legislation. PIIEC or IPCEI Hydrogen was launched on December 17, 2020.
2 The annual production capacity of the Belfort site is 1 GW, in addition to the 300 MW production capacity of the McPhy site in San Miniato, Italy.
McPhy_ PR Approval Gigafactory_EN_v01.11.2022