For several months, the hydrogen industry has been waiting for national support. She still has to wait. In fact, out of the 680 million euros used to subsidize the department in the 2024 budget, there is not a penny this year. Under the review of the Barnier government, no new credit will come into effect in 2025.
Originally, however, the promise was large: to quickly select, through a tender, producers of "green" hydrogen, in order to help them financially develop in a budding market. On Monday, the Minister (resigning) delegated to Energy, Olga Givernet, hinted behind the scenes that the launch of the mechanism was imminent. An hour later, I said it wasn’t there anymore.
Narrowing the price gap
If his entourage ensures that it is only a postponement, the pill goes wrong, especially since a first coup had been taken in June, with nearly 200 million euros amputated because of the public deficit. " We must not regress and risk completely deviating from France's strategy on this issue. “France Hydrogène, the main lobby in the sector, is the biggest.
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Its chairman Philippe Bouchly often reminds us that despite the lack of progress This case is not new It shall be deemed to have been established in accordance with the procedure laid down in the first subparagraph of this Article. The scheme, which was to cover a first tranche of 150 megawatts (MW) of projects to be supported over the year, already appeared in a February 2021 order. And it stems from France’s National Strategy in the field, itself published in 2020. This roadmap had to be revised before the summer. but, again, radio silence, even though the document is ready We have slipped into the government that is about to step down.
Specifically, the idea is to lower the price of decarbonized hydrogen produced from electricity and water to the price of "grey" hydrogen produced from fossil gases. Although the first one has an average cost of 5 to 12 euros per kilogram (depending on the size and nature of the production unit), the second one does not exceed 1.50 to 2.50 euros. In this situation, it is difficult to find a pattern that is both benign and profitable. Therefore, the country must fill the gap for certain selected energy companies by signing "differential contracts" (CFD), which mimic the work it has already done for wind turbine and photovoltaic panel operators.
Ignition delay
But at this stage, therefore, the launch of a tender is no longer relevant. In question, the political context is unstable, since the year was marked by ministerial reshuffles, a sudden dissolution and then censorship of the government. But also, more worrying, more fundamental reasons.
« Not everyone is convinced of the interest of rapidly developing green hydrogen. While the office of Olga Givernet is very favorable, we feel more hesitation in Bercy “A well-informed source said.
Because according to our information, the report is also related to the difficulties that the department is currently experiencing. In fact, manufacturers of electrolytic cells - machines that extract hydrogen from water through current - have encountered technical problems in scaling up. Essentially, these machines require a fairly constant power supply, making it difficult to withstand the intermittency of renewable energy.
However, France has a considerable advantage in this regard. Due to its nuclear power plant, Hexagon can rely on a widely decarbonized mixture. Therefore, by connecting the electrolytic cell to its national power grid, without directly relying on wind turbines or solar panels, the electrolytic cell can be continuously powered. Of course, the premise is that this production method is considered "green" by the European Commission. The Brussels administration must quickly decide this by announcing the long-awaited authorization bill for the industry.