France is expected to fall short of its goal to install 6.5 GW of electrolyzer capacity by 2030 for green hydrogen production, according to a lobby group.
The France Hydrogene lobby, backed by 117 industrial players and institutions, expressed concerns about the government’s plans to prioritize large industrial projects, potentially destabilizing the country’s hydrogen industry.
The lobby spokesperson, Simon Pujau, emphasized the risks of solely focusing on massive electrolysis projects to decarbonize the 50 highest-emitting industrial sites. France’s major industrial emitters already receive significant financial support under the France 2030 plan, with the potential for additional funding.
Pujau highlighted the technological challenges of transitioning from small electrolyzer projects to several hundred-megawatt projects, stating that supporting projects between 20 and 100 MW is crucial for green hydrogen producers to achieve technological maturity.
As of the end of 2022, France had only 13 MW of installed electrolyzer capacity, with the majority of the 245 electrolyzer projects smaller than 15 MW. The lobby group warned that subsidizing large projects could hinder the development of French gigafactories for manufacturing electrolyzers and hydrogen components.
The uncertainty surrounding the support scheme and the lack of a clear framework for investment decisions have also created delays. Producers are hesitant to make final investment choices, awaiting the launch of a call for 1 GW of projects. This uncertainty could lead to project relocations abroad, according to Pujau.
In light of these challenges, French energy company TotalEnergies recently announced plans to develop a 1 GW electrolyzer for green hydrogen production in the United States. The company cited various advantages in the US, including a well-established gas infrastructure, a growing renewable power generation capacity, and significant public subsidies.
The future of France’s green hydrogen industry will depend on finding a balanced approach that supports both large-scale industrial projects and the development of smaller electrolyzer projects. Striking the right balance will be crucial in achieving France’s decarbonization goals and maintaining a competitive position in the global green hydrogen market.
