While the French hydrogen industry is still waiting for the national strategy to be revised, ADEME* is tackling a tricky question. Will France be able to produce green hydrogen domestically at a competitive price, thereby ensuring its energy sovereignty? Or would it be cheaper to import it, making the most of renewable electricity produced in countries with very high photovoltaic or wind power potential?

First of all, a reminder: around 400,000 tonnes of hydrogen are produced from fossil gas and consumed by the French industry (mainly chemicals and refining). But this is grey hydrogen, which results in the emission of 4 million tonnes of CO2. The alternative is electrolysis to produce low-carbon hydrogen from water and electricity (from renewable or nuclear sources). This is the path that France is favouring, through its strategy and a €9 billion budget. 

A big gap in electrolysis capacity

But there’s many a slip twixt cup and lip. In 2020, France set itself the target of achieving a production capacity of 6.5 gigawatts of low-carbon and/or renewable hydrogen by 2030 (the equivalent of 650 onshore wind farms). This represents 600,000 tonnes of hydrogen. However, projections show that only 0.3 gigawatts of production capacity will be installed by 2026. Europe is similarly disillusioned, with the Court of Auditors criticising unrealistic targets. ‘Today, the time has come to revise all these targets downwards, as they are far too ambitious given the time needed to develop the hydrogen sector and the associated technologies’, explains Luc Bodineau, coordinator of the Hydrogen programme at Ademe.

Admittedly, there are some major projects in France, such as the Normand’Hy project at Port-Jérôme (200 MW of electrolysis capacity by 2025) and Masshylia at La Mède (5 tonnes per day). But that may not be enough.

A 20-year window to remain competitive… provided there is no lack of investment

So do we need to import hydrogen? Some countries in South America and North Africa have very favourable renewable energy sources that could make it possible to produce hydrogen locally at low cost, as ADEME points out. However, it has to be liquefied to be transported by boat (transport using ammonia is also possible, but unmentioned). Additionally, it could be transported via pipelines ‘which do not yet exist’.

Looking ahead to 2030, ADEME’s analysis shows that hydrogen production in France ‘would remain competitive in most cases’. And until 2050. Beyond the financial cost, the issue of sovereignty has entered the debate. Several questions arise such as: Should France consolidate low-carbon ammonia production domestically in the interests of national sovereignty? Is it in France’s interest to develop a French production of e-kerosene? ‘Developing storage and associated infrastructure is essential if France wishes to remain competitive between now and 2030 and 2050,’ says Luc Bodineau. Will these elements be included in the revised strategy?

*ADEME (Agence de l’environnement et de la maîtrise de l’énergie) is the French Environment and Energy Management Agency

Are you a LinkedIn user who would like to follow the latest hydrogen news on a more regular basis? Then our LinkedIn weekly newsletter may be what you are looking for. You can subscribe to it here. 

Article written by Laurent Meillaud and translated by Logan King