France: €4 billion for the production of low-carbon hydrogen

France low carbon hydrogen

In Le Figaro, a French daily newspaper, the French Minister for Energy Transition, Agnès Pannier-Runacher, has announced the signing of a decree launching a support mechanism for the production of low-carbon hydrogen. The government will be allocating €4 billion to the most virtuous projects.

While the update on the national hydrogen strategy is still eagerly awaited (it was initially scheduled for the start of the summer) the government is showing that it is still lending its support. In Le Figaro, Agnès Pannier-Runacher announces that €4 billion (about $4.35 billion) will be earmarked for hydrogen production, via calls for tender. In detail, they will be launched in 2024, 2025 and 2026 to allocate production capacity in the form of 150, 250 and 600 megawatt instalments respectively. A total of 1,000 megawatts.

A tried and tested mechanism

The aim is to promote the most virtuous projects. “In concrete terms, the winners of the calls for projects will be awarded a score, 70% of which will be based on price criteria (on the basis of a ratio of euros per tonne of carbon avoided) and 30% on non-price criteria” as Le Figaro puts it. This is a tried and tested mechanism for developing green electricity from renewable energies. The aim is to close the price gap between grey and green hydrogen production. Contracts will be signed for a fifteen-year period. “We began by supporting the construction of electrolysers and fuel cells, and now we are securing the production of operators and making it competitive”, added Agnès Pannier-Runacher.

France has set itself the goal of becoming one of Europe’s leaders in low-carbon hydrogen production by 2030, with a €9 billion investment plan (about $9.8 billion).

In addition, here is what ‘France Hydrogène’ recommended a few months ago for the revision of the national strategy.

Do you want to learn more about the production of low carbon hydrogen ? Then our latest 2 articles on the subject should interest you. You can read them here and there

Article written by Laurent Meillaud and translated by Logan King 

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About the author

Logan King

Logan King

After an unusual career (3 years in the French army followed by a 3-year degree in Applied Foreign Languages), it was my passion for environmental issues that finally caught up with me and led me to join Seiya Consulting and H2 Today in June 2022. First as an end-of-study internship, then as Marketing & Communication Manager and translator at Hydrogen Today.

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