France Paves the Way for Renewable Hydrogen Production through Financial Aid Scheme
Key Ideas
  • France implements a financial aid scheme to support the production of renewable and low-carbon hydrogen, aiming to boost the hydrogen industry.
  • The aid scheme involves a competitive tendering procedure managed by the French Agency for Ecological Transition, open to EU and EEA-based project developers.
  • Eligibility conditions require projects to produce hydrogen through water electrolysis, with capacities ranging from 5MW to 100MW, mainly for direct industrial use.
  • The aid will be in the form of a contract for difference for up to 15 years, with €4 billion allocated by the French government to support the initiative.
The hydrogen industry in France is set for a positive start in 2025 with the implementation of a financial aid scheme to support the production of renewable and low-carbon hydrogen. This aid scheme, established through the 'Ordinance' and a subsequent Decree, kickstarts a competitive tendering process managed by the French Agency for Ecological Transition. The scheme is open to project developers from EU and EEA member states, emphasizing the production of hydrogen through water electrolysis within France. The projects, ranging from 5MW to 100MW in capacity, must predominantly aim at direct industrial use. The aid, amounting to €4 billion, will be provided in the form of a contract for difference over a maximum period of 15 years. This initiative is a strategic move by the French government to promote a national green industry and facilitate the transition to sustainable energy sources, aligning with EU regulations and goals for energy transition.
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