French authorities initiate competitive discussions to bolster the manufacturing of carbon-free hydrogen
France's Competitive Dialogue for Decarbonized Hydrogen Production
France is moving forward with its ambitious plans for decarbonized hydrogen production. The French Government launched a competitive dialogue for the support of decarbonized hydrogen production in December 2024, marking the beginning of the first wave of the hydrogen production support system.
The competitive dialogue, conducted by the Directorate General for Energy and Climate (DGEC) and ADEME, the system's operator, ensures that all candidates are heard under conditions that guarantee strict equality between them. Ten projects have been selected to participate in the dialogue phase of this competitive dialogue. However, the list of candidates selected for the dialogue is not made public according to the provisions of the Energy Code.
The competitive dialogue allows for the draft specifications to be refined with candidates to best reflect the technical and economic reality of the hydrogen market. The final version of the specifications will be finalized following consultation with the Energy Regulatory Commission.
France's first wave of the hydrogen production support system has a capacity of up to 200 MW. In the first wave, over 400 MW of electrolysis capacity were submitted for support, almost double the amount allocated. The national strategy aims to support 1 GW of electrolysis capacity, with an estimated cost of €4 billion.
The winners of the call for tenders will be announced as early as 2026. The mechanism to support the production of decarbonized hydrogen contributes directly to France's energy and industrial sovereignty and to the decarbonization of its industry.
Meanwhile, the European Commission continues to implement and refine EU-wide hydrogen rules and emission methodologies aimed at supporting decarbonized hydrogen production. France's national strategy aligns with this framework, but any formal Commission evaluation of France's specific support mechanism is either still ongoing or not publicly disclosed at this time.
The validation of the mechanism by the European Commission under State aid control is currently underway. Once the dialogue phase is completed, applicants will be able to submit their grant applications. The winners of the call for tenders will be made public at the end of the procedure, in early 2026.
This competitive dialogue is part of the Ministry of Industry and Energy's efforts to gradually gain technological, economic, and competitive maturity for the hydrogen sector. The hydrogen sector's maturity will initiate a wider deployment of hydrogen solutions, helping France transition towards a more sustainable and carbon-neutral future.
[1] European Commission. (2021). A hydrogen policy framework for a climate-neutral Europe. Retrieved from https://ec.europa.eu/info/strategy/priorities-2020-2024/europe-green-deal/climate-change-and-the-environment/hydrogen-strategy_en
[2] European Commission. (2022). Delegated act on the methodology for calculating greenhouse gas emissions from hydrogen production. Retrieved from https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12637-Delegated-Act-on-the-methodology-for-calculating-greenhouse-gas-emissions-from-hydrogen-production
[3] French Government. (2023). France adjusts its national hydrogen strategy. Retrieved from https://www.gouvernement.fr/info/france-adapte-sa-strategie-nationale-du-hydrogene/
The competitive dialogue, led by France's Directorate General for Energy and Climate (DGEC) and ADEME, is strategic for the business sector, as it aims to support the production of decarbonized hydrogen, a critical step towards achieving France's energy and industrial sovereignty and decarbonizing its industry. The final specifications for this project, which will be refined with candidates, will contribute to France's ambitious finance goals, with a national strategy aiming to support 1 GW of electrolysis capacity at an estimated cost of €4 billion.
