McPhy Energy S.A. (La Motte Fanjas, France) has selected Belfort, France to build its electrolyzer Gigafactory. The McPhy Gigafactory is a strategic tool to meet the challenges of competitiveness by further strengthening and perpetuating McPhy’s leadership position in the alkaline electrolyzer market and the materialization of economies of scale enabling to drastically reduce the cost of green hydrogen produced by electrolysis compared to carbon-based energy.
This project combines the development of new generation electrolyzers and the industrial deployment of their mass production, and is part of the IPCEI hydrogen. McPhy has submitted an application within the framework of this European funding that aims to support the R&D and industrialization of, in particular, the “electrolysis” technology brick to accelerate the development of the sector and the competitiveness of low-carbon hydrogen.
The preselection of the Belfort site represents a major milestone to meet the anticipated growth of McPhy’s markets. The Belfort site, oriented towards the “high tech” industry, was preselected for its ability to respond to the key issues raised by the industrial scale-up of electrolyzers:
- Prior structuring of an industrial, research and development ecosystem dedicated to innovation and hydrogen, and existence of potential partners within the sector;
- Industrial job pool and attractive environment;
- Geographical location at a European crossroads, facilitating interaction with other McPhy sites, but also facilitating sourcing, supply and delivery activities;
- Support from public stakeholders with economic, technical, functional and administrative measures to facilitate the management and deployment of this project.
The confirmation of the preselection and the final investment decision by McPhy should take place by the end of 2021 after the completion of the preliminary studies, the obtaining of administrative authorizations, and are subject in particular to the obtaining of the necessary financing, including those requested within the framework of the IPCEI process.
The objective is to start production in the first half of 2024 with a gradual ramp-up to a capacity of 1 GW per year.
The construction of this new industrial infrastructure would represent an investment of €30 to €40 million. It would lead to the creation, at full load, of more than 500 McPhy jobs, including around 400 in France and a hundred in Germany and in Italy. In addition, several hundred indirect jobs would be created in France and in Europe.
Thanks to this major investment in its industrial facilities, McPhy would benefit from a total annual production capacity equivalent to 1.3 GW2, in line with the growth perspectives of the green hydrogen markets, particularly in heavy industry.
While waiting for the start-up of its Gigafactory, McPhy will rely on its current industrial facilities, which are sized for current demand and can be further expanded to meet the strong growth in the portfolio of opportunities, notably with the San Miniato and Wildau sites dedicated to electrolyzers.