France: Hydrogen players demand concrete action from the French government

France's hydrogen professionals are calling on the French government to respect its commitments to develop this sector, which is crucial to industrial decarbonization.
Hydrogène transition énergétique décarbonation

Partagez:

The hydrogen sector, essential to achieving carbon neutrality targets, is currently the focus of attention in France.
France Hydrogène, an organization representing the main players in this sector, expresses its concern at the government’s delays in implementing promised support measures.
In September 2020, France launched a national hydrogen strategy, but concrete progress has been slow in coming.
The European Union also pointed out that the stated hydrogen targets were too ambitious, given the lack of favorable legislation for the sector.
Nevertheless, hydrogen projects are multiplying in France, as in the case of the Dijon metropolitan area’s energy transition for its transport system.

The Importance of Hydrogen for Decarbonization

Hydrogen is seen as a key solution for decarbonizing industrial and transport sectors where direct electrification is not viable.
France Hydrogène insists that hydrogen is essential for reducing CO2 emissions and meeting the climate targets set by the Paris Agreement.
However, despite promises of support, several measures remain unresolved, notably the support mechanism for hydrogen production by electrolysis.
Industry players point out that water electrolysis is an essential method for producing decarbonized hydrogen, as opposed to hydrogen currently produced from natural gas.
The support mechanism, announced in 2023 with a budget of 4 billion euros, was to enable selected companies to produce larger volumes of green hydrogen.
This delay threatens France’s decarbonization objectives and could slow down the energy transition.

Economic and financial issues

The Ministry of Finance, headed by Bruno Le Maire, is seen as a brake on the realization of these commitments.
The budgetary rigor imposed by Bercy is worrying hydrogen professionals, who see this sector as a strategic opportunity for the French economy.
Philippe Boucly, President of France Hydrogène, deplores the fact that financial orthodoxy is being applied “on the back of hydrogen”, jeopardizing investments that are crucial to the country’s energy future.
In addition, the sector stresses the importance of heavy-duty, intensive hydrogen mobility, a field in which France could take industrial leadership.
Reaffirming support for these initiatives is essential to maintain France’s industrial and competitive momentum in the global hydrogen market.

Prospects for the hydrogen industry

Hydrogen represents a major opportunity for the reindustrialization of France.
Investment in hydrogen production by electrolysis and support for the value chain, from equipment manufacturing plants to refueling stations, are essential to make this vision a reality.
Industry players are calling for immediate, determined action to ensure that we don’t lose the strategic lead we have built up since the launch of the hydrogen strategy.
The energy transition depends on bold political and economic choices.
France, as a pioneer in the hydrogen strategy, has a duty to turn its ambitions into tangible realities to contribute to global decarbonization and industrial competitiveness.
Current delays could jeopardize not only climate objectives, but also the economic benefits of innovation and job creation in this booming sector.
France’s hydrogen professionals are calling on the French government to provide unfailing support for this strategic sector.
The energy transition is a global challenge, and France must play a leading role.
Support for the hydrogen industry should not be seen as an expense, but as a strategic investment in the country’s energy and industrial future.

Tree Energy Solutions and CPC Finland will produce 125,000 tonnes annually of e-NG at the Finnish port of Rauma, targeting European and international markets with a significant investment.
The European Commission grants €3.5mn to support preparatory work for a Franco-German cross-border network aimed at transporting hydrogen between the Grand Est region and Baden-Württemberg starting in 2029.
French company McPhy Energy awaits a court decision regarding offers submitted during its judicial reorganization, paving the way for probable liquidation and potential delisting of its shares.
The majority-Indigenous-owned Canadian manufacturer HyVera Distributed Energy is introducing an eCat pellet that instantly produces ultra-pure green hydrogen without external electricity and is counting on two pilot plants to simplify industrial supply.
Underground hydrogen storage, essential to support its growth, continues to face significantly higher costs than natural gas storage, along with major technical challenges hindering its competitiveness against conventional energies.
Singapore-based hydrogen specialist Hydrexia seals a protocol with Indonesian gas giant Samator to deploy purification, transport and storage of hydrogen, betting on rapidly growing local demand and export outlets to the Asia-Pacific region.
Cadiz Inc. signs a memorandum of understanding with British company Hoku Energy for a large-scale energy project including green hydrogen, solar power, and digital infrastructure in the Californian desert, projecting annual revenues of up to $10mn.
BP indefinitely halts its blue hydrogen project at the Whiting refinery in Indiana, raising questions about the future of federal funding and the impact on regional plans for a decarbonized hydrogen sector in the United States.
The Polish energy group ORLEN receives a non-repayable grant of €382 million from the National Recovery Plan to finance its renewable and low-emission hydrogen production initiatives.
Georgia Power and Mitsubishi Power announce successful completion of an unprecedented test incorporating 50% hydrogen into an advanced gas turbine, reducing CO2 emissions by 22% compared to natural gas alone.
Neoenergia has begun construction of one of Brazil's first green hydrogen plants, aimed at supplying heavy and light vehicles, with an investment exceeding 30 million Brazilian reais ($5.99mn).
The SA-H2 fund, supported by international partnerships and local institutional backing, mobilises 37 million USD to develop export-oriented green hydrogen from South Africa, with an initial concrete project announced.
Turbotech reports successful combustion testing of a hydrogen turboprop, developed through digital simulation with Ansys, marking an industrial milestone in light aircraft using alternative fuel.
France Hydrogène responds to the Cour des Comptes report published on June 5, criticising an incomplete reading of updated targets and the economic impacts of decarbonised hydrogen development.
The Belfort Commercial Court has opened a judicial reorganisation procedure for McPhy, while a renewed call for tenders for its asset sale is now set to close on 13 June.
Plug Power CFO Paul Middleton acquired 650,000 shares on the market, affirming his support for the long-term strategy of the hydrogen-focused company.
The Canadian government is funding an initiative to support 40 SMEs in British Columbia’s hydrogen sector, aiming to increase foreign investment and expand international market share.
Developer CWP Global has paused its $40 billion AMAN project in Mauritania due to a lack of buyers for green ammonia despite favourable local conditions.
A study reveals that the profitability of African green hydrogen exports to the European Union depends on political support from Europe, despite the abundance of ongoing projects on the continent.
Plug Power expands its partnership with Allied Green through a new 2 GW electrolyzer deal tied to a $5.5bn chemical plant in Uzbekistan.