France’s Hydrogen Strategy Update: Lower Ambitions But More Localisation And Support

30 April 2025

Key changes to the strategy

Lowering electrolysis targets:

    • By 2030: from 6.5 GW → to 4.5 GW (-31%).
    • By 2035: from >10 GW → to 8 GW (-20%).

    Reasons for the revision:

      • Slow uptake of hydrogen solutions in industry.
      • Fierce international competition (especially from the US and China).
      • Progress in alternative decarbonisation methods (e.g. direct electrification).
      • High cost of green hydrogen (in the EU — €12–16/kg according to PBL).

      Government support:

        • €4 billion in subsidies until 2040 for R&D and infrastructure.
        • Focus on localization of production (electrolyzers, fuel cells).

        New calls for proposals:

        • IDH2 (development of key hydrogen technologies).
        • Synthetic fuels for aviation and shipping (industrial production by 2030).
        • Hydrogen transport (stimulating demand for light commercial vehicles).

        Context: problems of the hydrogen market in the EU

        Unrealistic targets:

        • BloombergNEF (2024): green hydrogen will remain expensive longer than expected.
        • TotalEnergies: EU target (20 million tons of green H₂ by 2030) is unachievable.
        • Westwood: only 17% of planned EU projects (12 GW out of 70 GW) will be implemented by 2030.

        Infrastructure barriers:

        • In 2023, the capacity of electrolyzers in the EU is only 216 MW.
        • Lack of logistics, storage and stable demand.

        Conclusions

        France is adjusting plans, recognizing technological and market limitations.

        The focus is shifting from scaling to:

          • Technological sovereignty (reducing dependence on imports).
          • Niche applications (aviation, maritime transport, heavy industry).

          The EU as a whole is lagging behind global hydrogen ambitions due to:

            • High costs (2-3 times more expensive than gray hydrogen).
            • Competition with the US (IRA subsidies) and China (large-scale production).

            Bottom line: France’s hydrogen strategy has become more pragmatic, but its success depends on its ability to reduce costs and create sustainable demand. For now, green hydrogen remains an experimental solution rather than a mass decarbonization tool.

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