France: industry increasingly thirsty for hydrogen (Insee)

French industry is increasingly thirsty for hydrogen even though it is still not widely used in factories.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

French industry is increasingly thirsty for hydrogen, even though it is still little used in factories compared to gas and electricity, according to a study by INSEE.

In 2021, hydrogen consumption by industry jumped 40% in France after a 25% drop in 2020, the year of the health crisis, says a note titled “energy bill rises 46% in industry in 2021″.

Overall, however, by 2021, hydrogen will account for only 0.6% of the industry’s energy consumption, 70% of which is based on gas and electricity.

95% of hydrogen is consumed in the chemical sector, a large user of natural gas, which has increased the share of hydrogen from 2% to 3% of its energy consumption by 2021.

Other sectors are also turning to hydrogen, such as electronics, food processing and metallurgy, but in minimal proportions since this element represented less than 0.2% of their energy consumption in 2021, notes the statistics institute.

Hydrogen is highly sought after for the decarbonization potential it offers to industries, provided that it is itself produced from renewable (solar, wind or hydroelectric) or decarbonized (nuclear) electricity.

Last year, gas accounted for 35.4% of industrial energy consumption, ahead of electricity (34.9%), petroleum products (10.4%), steam (7.2%), wood (6.1%), and coal derivatives such as coal, coke or lignite (3.2%).

Combustion of renewables such as biomass and sewage sludge, and of non-renewables such as rubber and plastic waste, accounted for 2.2% of total industrial energy consumption in France.

Including self-generation of steam by factories and establishments, the weight of steam in the energy consumption of factories in France is estimated at 15% by INSEE.

In total, gross energy consumption in industry increased by 7% in 2021, to 34.6 million tons of oil equivalent, but remained lower than in 2019, before the health crisis, especially in chemicals and metallurgy.

The survey covers the energy consumption of industrial sites with 20 or more employees, excluding the energy industry and commercial craft industry, but including recovery.

European Energy increases the capacity of its Måde Power-to-X site to 8.1 MW, with a new electrolyser in service and ongoing tests for commercial production in 2026.
Lhyfe aims to double its revenue next year, refocuses industrial priorities and plans a 30% cost reduction starting in 2026 to accelerate profitability.
Plug Power has completed the installation of a 5 MW PEM electrolyzer for Cleanergy Solutions Namibia, marking the launch of Africa’s first fully integrated green hydrogen production and distribution site.
Indian group AM Green has signed a memorandum of understanding with Japanese conglomerate Mitsui to co-finance a one million tonne per year integrated low-carbon aluminium production platform.
Next Hydrogen completes a $20.7mn private placement led by Smoothwater Capital, boosting its ability to commercialise alkaline electrolysers at scale and altering the company’s control structure.
Primary Hydrogen plans to launch its initial drilling programme at the Wicheeda North site upon receiving its permit in early 2026, while restructuring its internal exploration functions.
Gasunie and Thyssengas have signed an agreement to convert existing gas pipelines into hydrogen conduits between the Netherlands and Germany, facilitating integration of Dutch ports with German industrial regions.
The conditional power supply agreement for the Holmaneset project is extended to 2029, covering a ten-year electricity delivery period, as Fortescue continues feasibility studies.
HDF Energy partners with ABB to design a multi-megawatt hydrogen fuel cell system for vessel propulsion and auxiliary power, strengthening their position in the global maritime market.
SONATRACH continues its integration strategy into the green hydrogen market, with the support of European partners, through the Algeria to Europe Hydrogen Alliance (ALTEH2A) and the SoutH2 Corridor, aimed at supplying Europe with clean energy.
Operator GASCADE has converted 400 kilometres of gas pipelines into a strategic hydrogen corridor between the Baltic Sea and Saxony-Anhalt, now operational.
Lummus Technology and Advanced Ionics have started construction of a pilot unit in Pasadena to test a new high-efficiency electrolysis technology, marking a step toward large-scale green hydrogen production.
Nel ASA launches the industrial phase of its pressurised alkaline technology, with an initial 1 GW production capacity and EU support of up to EUR135mn ($146mn).
Peregrine Hydrogen and Tasmania Energy Metals have signed a letter of intent to install an innovative electrolysis technology at the future nickel processing site in Bell Bay, Tasmania.
Elemental Clean Fuels will develop a 10-megawatt green hydrogen production facility in Kamloops, in partnership with Sc.wén̓wen Economic Development and Kruger Kamloops Pulp L.P., to replace part of the natural gas used at the industrial site.
Driven by green hydrogen demand and state-backed industrial plans, the global electrolyser market could reach $42.4bn by 2034, according to the latest forecast by Future Market Insights.
Driven by mobility and alkaline electrolysis, the global green hydrogen market is projected to grow at a rate of 60 % annually, reaching $74.81bn in 2032 from $2.79bn in 2025.
Plug Power will supply a 5MW PEM electrolyser to Hy2gen’s Sunrhyse project in Signes, marking a key step in expanding RFNBO-certified hydrogen in southern France.
The cross-border hydrogen transport network HY4Link receives recognition from the European Commission as a project of common interest, unlocking access to funding and integration into Europe’s energy infrastructure.
The withdrawal of Stellantis weakens Symbio, which is forced to drastically reduce its workforce at the Saint-Fons plant, despite significant industrial investment backed by both public and private stakeholders.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.