BAKU, Azerbaijan, November 16. France's hydrogen demand is expected to surge to 3.4 million tons by 2040, Trend reports.
France proactively identified hydrogen as a key element in its energy transition efforts, establishing initial targets for industrial and transport applications in 2018. Subsequently, an official hydrogen strategy was unveiled in 2020, allocating $8.2 billion to install 6.5 GW of electrolysis in the country by 2030.
According to the analysis prepared by Rystad Energy, independent energy research and business intelligence company from Norway, as the second-largest consumer of hydrogen and its derivatives in Europe, trailing only Germany, France presently utilizes approximately 1 million tons, distributed between refinery processes and the fertilizer sector (specifically through ammonia). While domestically producing about 800 kilotons of hydrogen, France imports the remaining amount in the form of ammonia products such as anhydrous, urea, and ammonium nitrate.
To align with the EU's Fit-for-55 Renewable Energy Directive, France aims to replace 42 percent of its grey hydrogen used in industry with renewable fuel of non-bio-origin. Presently, France has proposed 670,000 tons of clean hydrogen projects, primarily centered around electrolysis, but more than 80 percent of these projects are still in the conceptual phase.
In a move to propel the progress of these initiatives, France is dedicating 4 billion euros for a subsidy tender aimed at domestic hydrogen production, extending assistance to both renewable and nuclear electrolysis. The subsidy will operate on the contract-for-difference mechanism, and auctions are scheduled for 150 MW in 2024, 250 MW in 2025, and 600 MW in 2026, the analysis added.
