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Home Home - Hydrogen
hydrogen

French Audit Court Warns Hydrogen Strategy Is ‘Ambitious but Unrealistic,’ Flags Funding Misalignment

Anela DoksoBy Anela Dokso11/06/20252 Mins Read
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With France positioning hydrogen as a linchpin of industrial decarbonization, the Court of Auditors has raised critical concerns: current 2030–2035 hydrogen capacity targets outpace credible deployment timelines, and nearly half of all subsidies have been directed toward road transport—despite limited evidence of mature demand.

Since its first hydrogen roadmap in 2020, the French state committed approximately €9 billion in support for green and low-carbon hydrogen over the decade. Disbursements so far include €0.9 billion in grants and ~€3 billion in legally committed funding—but the Court flags delays in launching production support schemes and calls into question whether targets (6.5 GW by 2030, 8–10 GW by 2035) remain tenable.

The Court’s analysis also highlighted inefficiencies in public spending: about 46 percent of hydrogen subsidies have flowed into road mobility initiatives, despite the sector accounting for only a minor share of industrial decarbonization pathways. Battery-electric alternatives continue to outpace fuel-cell vehicles in deployment, prompting scrutiny over mobility’s strategic priority.

The report’s financial modelling estimates that electrolytic hydrogen produced at €75/MWh incurs production costs of €4.0–4.9/kg, representing a €1.5–2/kg gap compared to conventional gray hydrogen—without carbon capture. Even at higher electrolyzer performance, competitiveness hinges on electricity prices falling well below current levels.

In light of these findings, the Court urges targeted policy recalibration. Key recommendations include establishing robust national tracking systems for hydrogen output and usage, revising production and consumption trajectories to reflect market realities, and redirecting funding toward industrial users and flexible electrolytic operations.

France’s government has already adjusted its target downward—from 6.5 GW to 4 GW by 2030 and from 10 GW to 8 GW by 2035—signaling a growing acknowledgment that ambitions must align with delivery.

As Europe reassesses its hydrogen ambitions, French auditors’ caution underlines a broader truth: hydrogen policy requires targets rooted in demand and cost realities—not political resolve alone. Aligning financial support with flexible deployment and industrial relevance may help restore strategic coherence and enhance market credibility.


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