Set to be commissioned in the first half of 2024, the Belfort facility is planned to boast an annual production capacity of 1GW, adding to the firm’s existing 300MW production capacity at its San Miniato, Italy site.

Subsequently, the company has signed a contract with Bpifrance which provided the terms and conditions under which it will receive €114m ($112m) of public support, as approved by the European Commission’s IPCEI Hy2Tech programme.

Read more: McPhy’s Gigafactory plans to benefit from up to €114m of IPCEI Hy2Tech funding

H2 View understands, by December 31, 2022, the firm will receive an initial payment of €28.5m ($28.1m), with payments set to take the form of expenses incurred up to the total of €114m.

McPhy unveiled plans for the gigafactory in 2021 in a bid to accelerate the transition to industrial-scale electrolysis. The company has since revealed that the site will host the development and production of new electrolysers that will enable 20MW, 100MW, and far beyond size electrolysers.

Read more: McPhy unveils gigafactory plans for Belfort, France

Jean-Baptiste Lucas, CEO of McPhy, said the site would act as a decisive tool in the development of large-scale electrolysers, as nations across the globe look to decarbonise hard-to-abate sectors.

“We are very pleased with the decision of our Board of Directors, which is a positive conclusion to the various favourable notices we have recently received about our Gigafactory project,” said Lucas.

He added, “This Gigafactory will be a decisive tool in the development and design of large-scale electrolysers, which are essential for the use of green hydrogen in ambitious decarbonisation projects for industry and heavy mobility.

“We will soon have an industrial set-up capable of mass-producing a wide range of electrolysers on a continental-scale, that is unmatched by any other player in decarbonised electrolysis in Europe.”

Antoine Ressicaud, Chief Operating Officer at McPhy, commented, “This is an inspiring project for the entire McPhy team, with 20,000 square metre dedicated to the manufacture and testing of multi-MW electrolysers. Our desire is to implement the highest standards of industrial performance on this Belfort facility, through an ambitious social and environmental approach.”