France: uncertainties and challenges in industrial transformation at Fos-sur-Mer

In Fos-sur-Mer, the transformation of the industrial-port zone into a low-carbon industrial hub raises both ambitions and questions. Despite announced investments, challenges related to infrastructure, energy, and timelines remain significant.

Share:

The industrial-port zone of Fos-sur-Mer, spanning 9,000 hectares, is one of the largest industrial hubs in France. For six decades, the site has concentrated heavy industries, contributing 17 million tonnes of CO2 per year, accounting for a quarter of the country’s industrial emissions. In January 2023, the government designated Fos-sur-Mer as one of the first “low-carbon industrial zones” in the country, alongside Dunkirk, paving the way for massive investments in energy transition.

An investment potential estimated at €15 billion

Local authorities and economic stakeholders are banking on a reindustrialisation strategy focused on renewable energies, sustainable fuels, and a decarbonised steel plant. According to Jean-Claude Chauvin, president of the Aix-Marseille-Provence Chamber of Commerce and Industry, ongoing projects could amount to between €12 billion and €15 billion in investments for new facilities, and €3 billion to €5 billion for upgrading existing infrastructure. In the long term, these projects could generate 10,000 direct jobs.

Obstacles to implementation

Despite these prospects, project implementation faces structural challenges. ArcelorMittal, the zone’s main employer with 2,500 workers, suspended its decarbonisation initiatives in Europe at the end of 2024 due to a lack of sufficient support measures. More broadly, funding for the necessary infrastructure to support development, particularly rail and road transport, remains uncertain. With only a single railway line and a single departmental road, industrial players are calling for around €2 billion in investments to improve logistics.

Increasing electricity demand

The energy transition in the area will require a significant increase in electricity consumption. Demand could double by 2030 to support new industrial projects, particularly hydrogen production. However, the current electrical infrastructure is insufficient to meet these needs. A very high voltage (THT) power line is planned for 2028 to deliver the required energy, but its route, crossing part of the Camargue, is facing local opposition.

Structuring governance

In response to these challenges, industrial and public stakeholders are advocating for a dedicated governance framework to accelerate project implementation and secure financing. A public debate, organised by the Commission nationale du débat public (CNDP), is scheduled for spring to assess the economic and environmental implications of ongoing initiatives.

The president of the Aix-Marseille-Provence Chamber of Commerce and Industry stresses the urgency of action: “We need to move from projects to realisation, from potential to real life!”

The Luxembourg-based group will handle engineering, procurement, commissioning and installation of flexible pipelines and umbilicals to link a new field to Egypt’s existing offshore infrastructure, with offshore work scheduled for 2026.
British firm Octopus Energy is considering a £10 billion spin-off of Kraken Technologies, involving an upcoming minority stake sale, and has initiated preliminary discussions with banks to oversee the strategic operation within the next year.
Investment fund Ardian finalises its takeover of Akuo and appoints former Électricité de France executive Bruno Bensasson to steer the renewable-energy developer’s growth towards five gigawatts of installed capacity by 2030.
TotalEnergies acquires 50% of AES' renewable portfolio in the Dominican Republic following a previous purchase of 30% of similar assets in Puerto Rico, consolidating 1.5 GW of solar, wind, and battery storage capacities in the Caribbean.
TotalEnergies is selling half of a 604 MW Portuguese energy portfolio to the Japanese consortium MM Capital, Daiwa Energy and Mizuho Leasing for €178.5mn, retaining operation and future commercialisation of the assets concerned.
Shell announces amendment of two annual reports after notification by Ernst & Young of non-compliance with SEC auditor partner rotation rules; however, financial statements remain unchanged.
The Financial Superintendency of Colombia approves an amendment to Ecopetrol’s local bonds and commercial paper program, enabling issuance of sustainable, indexed, or in-kind repayable instruments.
ABO Energy is selling its subsidiary ABO Energy Hellas and an energy project portfolio of approximately 1.5 gigawatts to HELLENiQ ENERGY Holdings, thus refocusing its strategic resources towards other markets, notably Germany, without major financial impact anticipated for 2025.
Iberdrola announces a supplementary dividend of €0.409 per share for 2024 under the "Iberdrola Retribución Flexible" programme, bringing the total annual remuneration to €0.645 per share, representing a year-on-year increase of 15.6%.
BHP has signed contracts with COSCO Shipping to charter two ammonia-powered Newcastlemax bulk carriers, primarily for transporting iron ore between Western Australia and Northeast Asia starting from 2028.
CBAK Energy and Anker Innovations jointly launch a battery cell manufacturing facility in Malaysia, with a commercial potential estimated at $357 million, further strengthening their strategic partnership in the lithium-ion battery sector.
ORIX announces the sale of the majority of its stake in Greenko to AM Green Power and commits a new USD 731mn investment in the Luxembourg-based AMG holding, confirming its strategic repositioning in next-generation energy.
Invenergy seals four further contracts with Meta to supply nearly eight hundred megawatts of solar and wind power to the group’s data centres, lifting total cooperation between the two companies to one point eight gigawatts.
Pedro Azagra leaves his role as CEO of Avangrid to become CEO of Iberdrola, while Jose Antonio Miranda and Kimberly Harriman succeed him as CEO and Deputy CEO respectively of the American subsidiary.
The US investment fund Ares Management enters Plenitude's capital by acquiring a 20% stake from Eni, valuing the Italian company at 10 billion euros and reinforcing its integrated energy strategy.
ENGIE secures a contract to reduce Airbus' industrial emissions in France, Germany, and Spain, targeting an 85% decrease by 2030 through various local energy infrastructures.
Alain Rhéaume, Chairman of Boralex’s Board of Directors for eight years, will leave his position by December, following the appointment of his successor by the governance committee of the Canadian energy group.
Norwegian group Statkraft plans an annual cost reduction of NOK2.9bn ($292 million) by 2027, citing possible job cuts amid rising financial burdens and volatility in the European energy market.
EDF merges EDF Renouvelables and its International Division into EDF power solutions, led by Béatrice Buffon, to optimise its global 31 GW low-carbon energy portfolio and strengthen its international positioning.
TotalEnergies announces a strategic partnership with Mistral AI to establish a dedicated innovation laboratory integrating artificial intelligence tools aimed at enhancing industrial efficiency, research, and customer relations.