In a decisive move to bolster France’s domestic hydrogen production capacity, Doubs-based startup Gen-Hy has secured €100 million (USD $107 million) in state support, a key component of the country’s industrial decarbonisation and energy sovereignty strategy.
The announcement, made by Industry Minister Marc Ferracci, positions Gen-Hy at the forefront of France’s effort to scale up electrolyser manufacturing, a technology critical to achieving national and EU green hydrogen targets.
Backed by the European Commission under the Important Project of Common European Interest (IPCEI) Hydrogen program, the Gen-Hy facility in Allenjoie will specialize in the production of anion exchange membrane (AEM) electrolyzers — an emerging alternative to more established PEM and alkaline systems. The plant will also manufacture the membranes themselves, addressing a key supply chain vulnerability in the European electrolyzer market.
Construction of the Allenjoie manufacturing site is already underway, with operations slated to begin in the first quarter of 2026. At full capacity, the facility is designed to produce 350 electrolyzers per year, with modular systems ranging from 100 kW to 2 MW, serving industrial, mobility, and energy storage applications.
Gen-Hy anticipates creating 150 jobs within the first four years of operation, eventually scaling to 250 positions as the plant expands production. The investment underscores a dual objective: decarbonizing French industry while stimulating regional employment in Bourgogne-Franche-Comté — a region central to the government’s clean technology manufacturing strategy.
The European Commission formally validated the project in May 2024 as part of the fourth wave of IPCEI Hydrogen approvals, which aim to accelerate industrial-scale hydrogen value chains across the bloc. AEM technology, while less commercially mature than PEM or alkaline systems, offers potential advantages in capital cost reduction and operational flexibility, making it a promising candidate for decentralized, mid-scale green hydrogen production.
Minister Ferracci’s scheduled visit to the Allenjoie site and subsequent stops in the Territoire de Belfort underline the French government’s commitment to embedding hydrogen infrastructure within its broader industrial policy — a response to both climate targets and energy security concerns exacerbated by recent geopolitical disruptions.
France’s domestic electrolyzer manufacturing capacity has lagged behind early movers like Germany and Denmark, where companies such as Siemens Energy and Nel Hydrogen have advanced large-scale facilities. The Gen-Hy investment represents a significant catch-up effort, aligned with France’s national hydrogen strategy, which targets 6.5 GW of installed electrolysis capacity by 2030.
Given increasing demand for localized electrolyser supply amid rising green hydrogen project announcements across Europe, the ability to produce AEM systems domestically offers both strategic resilience and export potential. The proximity to regional automotive and heavy industry clusters in northeastern France further positions the plant to serve key decarbonisation sectors.
Stay updated on the latest in energy! Follow us on LinkedIn, Facebook, and X for real-time news and insights. Don’t miss out on exclusive interviews and webinars—subscribe to our YouTube channel today! Join our community and be part of the conversation shaping the future of energy.
