France has scaled back its 2030 targets for renewable and nuclear-powered electrolytic hydrogen production capacity by 30% because the sector is developing at a slower pace than it previously expected.

The government has cut the installed capacity target to 4.5GW from a goal of 6.5GW set in 2020, according to an updated national hydrogen strategy set out by the Ministry of Economy and Industry. The 2035 target has been cut to 8GW from 10GW.

“The carbon-free hydrogen market is starting to take shape. However, the deployment been slower than expected, in France as in other countries around the world,” the government said. It added that the deployment of the first industrial-scale projects have taken longer than expected, while the market needs more time to deliver higher performance electrolysers in order to reduce production costs.

The government also cited international developments that have altered the dynamics of the market since the publication of its initial strategy in 2020. These factors include increased competition from other regions such as the US, China, Japan, Korea, the MENA region and South America.

However, it reiterated its commitment to the deployment of hydrogen across industrial and transport sectors. It plans to offer about €4b ($4.56b) of subsidies to projects aimed at the industrial sector, excluding refining, supporting about 1GW of capacity over 15 years, to bridge the cost gap between electrolytic and fossil-fuel based hydrogen. The first tranche of funding, bidding for which was launched in December, will support capacity 200 MW.

The government also pledged shortly to publish the results of a study on the country’s potential natural hydrogen resources. A first research permit has been granted in the Pyrenees-Atlantiques, region and others are under investigation.

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Author: Stuart Penson