The scheme will offer 15-year per-kilogramme subsidies to green and low-carbon hydrogen producers exclusively supplying industrial use cases where “no economically viable” electrification pathways exist.

France will hold three competitive tender rounds to allocate funding. The initial €787m ($908m) round will aim to support 200MW of production.

Hydrogen produced using purely renewable power, in line with EU renewable fuels of non-biological origin (RFNBO) rules, and low-carbon electricity, like nuclear, will be supported.

Competitions Commissioner, Teresa Ribera, said the scheme would help reduce the EU’s fossil fuel dependence.

“The aid will support the most cost-effective projects, while minimising distortions of competition and trade in the internal market,” she added.

The French government has not confirmed when it will open calls for the first tender round.

The country has ambitious targets to establish 4.5GW of electrolyser capacity by 2030, and 8GW by 2035. However, it found itself at odds with the Commission over the RFNBO rules, which exclude nuclear power from qualifying.

French President Emmanuel Macron recently lamented Europe’s hydrogen framework at an EU leaders’ summit, where he argued RFNBO rules created unnecessary complexity and slowed market development.

He called for hydrogen regulations to be built around carbon intensity, competitiveness, and production on EU soil.

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