France's New Initiative to Boost the Hydrogen Industry in 2025
Key Ideas
- France has launched a financial aid scheme for renewable and low-carbon hydrogen production, with a total capacity of 1,000 MW by 2026.
- Eligible projects must be located in France, produce hydrogen by electrolysis, and have a capacity between 5MW and 100MW.
- Financial aid will be in the form of a contract for difference for a maximum of 15 years, with €4 billion allocated by the French government.
- The initiative aims to promote new installations for direct industrial use, excluding certain uses like electricity production and natural gas injection.
France has kickstarted its hydrogen industry in 2025 with a new financial aid scheme for renewable and low-carbon hydrogen production. The Ordinance of 17 February 2021 and a subsequent Decree have established the legal framework for this initiative, with the total capacity set to reach 1,000 MW by 2026. The competitive tendering procedure is overseen by the French Agency for Ecological Transition (ADEME) and involves multiple stages, culminating in aid contracts being signed with successful candidates. Eligibility criteria include projects located in France, production of hydrogen by electrolysis, and a capacity between 5MW and 100MW. The financial aid, amounting to €4 billion, will be in the form of a contract for difference lasting up to 15 years. This support aims to encourage new installations primarily intended for direct industrial use, promoting a shift towards green energy in line with France's national strategy.
Topics
Installation
Renewable Energy
Green Energy
European Union
Government Initiative
Industry Support
Financial Aid
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