Plug Power’s 5 MW PEM Electrolyzer to Drive Hydrogen Production at Sunrhyse Project

Plug Power Inc. and Hy2gen AG have signed a non-binding letter of intent to deliver a 5 MW PEM electrolyzer to the Sunrhyse green hydrogen project in southern France’s Provence-Alpes-Côte d’Azur region. It’s a perfect fit with France’s national hydrogen roadmap and a clear example of green hydrogen production at a multi-megawatt scale.

Key takeaways

• Plug Power will ship a 5 MW proton exchange membrane (PEM) electrolyzer to Hy2gen’s Sunrhyse site near Signes, Provence-Alpes-Côte d’Azur.
• This initial deal highlights Plug Power’s shift from fuel cells to full-spectrum hydrogen production solutions, from electrolyzers to liquefaction.
• Hy2gen AG plans to integrate the electrolyzer into its industrial-scale plant, using renewable power to churn out low-carbon hydrogen.
• The Sunrhyse project plays right into France’s broader push for industrial decarbonization and backs the EU’s goal of gigawatts of electrolyzer capacity by 2030.
• Of course, everything’s still tentative—final contracts, permits, and financing are under negotiation and pending regulatory green lights.

Technology at a glance

• PEM electrolyzer: A solid polymer membrane unit that splits water into hydrogen and oxygen, offering rapid response to fluctuating power inputs and serving as a cornerstone for clean hydrogen production.
• Capacity: 5 MW, enough to produce several tonnes of hydrogen per day when paired with renewables.
• Seamless integration: Built to hook up with the high-irradiance solar and wind farms in southern France.
• Pure output: Delivers high-pressure hydrogen with sub-ppm oxygen levels, ready for mobility, industrial feedstocks, or synthetic fuels.
• Scalable: You can stack or replicate these modules to hit the multi-megawatt targets Hy2gen has set across Europe.

Strategic positioning

France kicked off its national hydrogen strategy in 2020 to decarbonize tough sectors like steel, chemicals, and heavy transport. Thanks to public funding and incentives, Provence-Alpes-Côte d’Azur is quickly becoming a hotspot for green hydrogen projects. Teaming up with Hy2gen not only expands Plug Power’s European footprint but also puts its electrolyzer tech to the test under real-world conditions.

For Plug Power, this LOI marks a big step from being a U.S.-focused fuel cell maker to a full-stack sustainable energy provider. And for Hy2gen, locking in a proven PEM system de-risks those early development stages, making it easier to woo investors and tap into EU grants or contracts for difference.

Broader implications

We don’t have exact emission cuts yet, but green hydrogen typically slashes greenhouse gases compared to grey or blue hydrogen. Plus, local communities will see more jobs—whether it’s building the plant, operating it, or keeping the grid humming.

Pairing intermittent solar or wind with flexible electrolysis also helps stabilize the grid, acting like a giant chemical battery. As more projects like Sunrhyse launch, everyone from utilities to logistics operators will feel more confident scaling up hydrogen infrastructure.

Next steps

Now it’s all about dotting the i’s and crossing the t’s. The teams will hammer out technical specs, lock down permits, and line up the cash. Once site studies, grid connections, and off-take deals are nailed down, they’ll sign the binding supply contract. If all goes according to plan, commissioning could kick off by late 2026, pumping green hydrogen into France’s industrial clusters and mobility hubs.

This LOI sends a clear message: partnerships between electrolyzer makers like Plug Power and developers like Hy2gen AG are the way forward. Hitting those 2030 climate targets will take more than technology—it’ll need the right mix of collaboration, policy support, and capital. The real challenge now is turning these letters of intent into large-scale, operating plants.

About Plug Power Inc.

Based in Latham, New York, Plug Power (NASDAQ: PLUG) offers hydrogen fuel cells, PEM electrolyzers, and the surrounding infrastructure. The company’s gone global, focusing on green hydrogen production, liquefaction, and fuel cell systems for material handling, mobility, and industrial uses.