The EC has approved France’s state aid scheme for hydrogen production

The European Commission has approved a French support scheme for the production of renewable and low-carbon hydrogen. This is stated in a press release from the institution.

The scheme will support the construction of new electrolyzers with a capacity of 1 GW. Funding will be provided through competitive tenders planned in three phases. The first tender covers 200 MW of electrolysis capacity with an estimated budget of €797 million. Hydrogen produced under the program will be sold exclusively for direct industrial use to limit its application to cases where there is no economically viable alternative to electrification.

The aid will be provided in the form of a fixed premium, and contracts will be concluded for a 15-year term. Beneficiaries will have to demonstrate compliance with EU criteria for the production of renewable fuels of non-biological origin (RFNBO), as well as low-carbon fuels in accordance with European delegated acts.

As noted, the program will support France’s efforts to reach an electrolyzer capacity of 4.5 GW by 2030 and 8 GW by 2035. The country expects that this program will help avoid up to 1,100 kilotons of CO2 emissions annually, contributing to the achievement of its EU climate goals.

As noted, the approval was granted in line with the objectives of the EU Hydrogen Strategy and the Clean Industry Deal. The scheme will also contribute to achieving the goals of the REPowerEU Plan to reduce dependence on Russian fossil fuels and accelerate the transition to clean energy sources.

As a reminder, in late February, the European Commission approved a €1.1 billion state aid scheme for France to support strategic investments that add production capacity for clean technologies. This is stated in the institution’s press release.