France is witnessing the emergence of a nascent green hydrogen industry, marked by the inauguration of giga-factories in Belfort and Bordeaux.
However, this development faces initial setbacks and uncertainty surrounding the country’s energy choices following the unexpected dissolution of the National Assembly.
Government Support and Industrial Ambitions
With €9 billion in public funding through the France Relance and France 2030 plans, France aims to become a leader in decarbonized hydrogen, a key element in decarbonizing industries like fertilizers, petrochemicals, steel, and heavy transportation.
The recent inaugurations of high-power fuel cell factories by Hydrogène de France (HDF) and Symbio (backed by Michelin, Forvia, and Stellantis) demonstrate significant progress in the sector.
The industry is particularly focusing on achieving sovereignty in the manufacturing of hydrogen production and storage equipment, specifically in the upstream segment of the value chain.
Giga-Factories and Public Funding
Five giga-factories for electrolyzers are planned in France, supported by substantial French and European public funding. Companies like John Cockerill, Elogen, Gen-Hy, GenVia, and McPhy are leading the charge in this development.
However, technical issues faced by McPhy and other global hydrogen players have raised concerns about the industry’s readiness. TotalEnergies CEO Patrick Pouyanné, skeptical of the rapid rise of green hydrogen, described the sector as still in its “embryonic” stage.
McPhy CEO Jean-Baptiste Lucas acknowledges the challenges but remains optimistic, attributing them to the technological maturation and learning curve being more complex than initially anticipated.
Green vs. Decarbonized Hydrogen
The hydrogen produced by these electrolyzers can be classified as either “green” (if the electricity used is from renewable sources like wind, solar, or hydro) or “decarbonized” (if the electricity is nuclear). Both are significantly less polluting than the “grey” hydrogen currently produced from natural gas.
Cost Concerns and Market Uncertainty
While equipment manufacturers are making progress, the cost of hydrogen remains a significant concern. Industry experts worry that without adequate support for end-users, the high production costs could hinder the widespread adoption of green hydrogen.
The government expected to release a revised hydrogen strategy this summer, but the political situation has now made its release uncertain. The industry is calling for financial support for hydrogen users to ensure the success of the initial strategy, which focused primarily on producers.
The temptation for protectionist policies is seen as a potential threat to the industry’s growth. European funding is crucial for projects like cross-border interconnections to import hydrogen from other countries, highlighting the importance of international collaboration in achieving a sustainable hydrogen economy.