France Launches Support Procedure for Renewable Hydrogen Production
Key Ideas
  • France has initiated a competitive bidding procedure to financially support the production of renewable or low-carbon hydrogen, aligning with its decarbonization strategy.
  • The support mechanism involves granting aid over 15 years with a ceiling price of 4 euros per kilogram of hydrogen produced.
  • Project eligibility criteria include new installations, technical capabilities, renewable electricity supply plans, and commercial commitments for direct industrial use.
  • Selection criteria include price and non-price factors, with a strong emphasis on limiting subsidy requests to enhance project selection chances.
France has launched a competitive bidding procedure to support the production of renewable or low-carbon hydrogen through water electrolysis, marking a significant step in its decarbonization strategy. The procedure, falling under the legal framework defined by the Energy Code, aims to accelerate the deployment of green hydrogen production capacity by granting public operating and investment aid over a 15-year period, with a maximum price of 4 euros per kilogram of hydrogen. The selection process involves three phases: candidate selection based on technical and financial capabilities, a competitive dialogue phase to refine projects, and the designation of winners for financial support. Eligible projects must be new installations with a capacity of over five MW and less than 100 MW, located in France, and demonstrate secure renewable electricity supply plans and commercial commitments for direct industrial use. Applicants are required to meet strict criteria, including demonstrating technical capabilities, experience in industrial projects, financial guarantees, and adherence to cybersecurity criteria within the EEA. The selection process heavily weighs the price criterion, encouraging applicants to limit subsidy requests while also considering non-price factors related to energy, technological, and environmental impacts. Overall, the initiative underscores France's commitment to fostering renewable hydrogen production and aligning with Europe's decarbonization goals, offering financial support to projects that contribute to a sustainable energy future.
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