The European Commission has approved a French State aid scheme designed to accelerate the production of renewable and low-carbon hydrogen, marking a step forward in the European Union’s efforts to decarbonise industry.
The Commission said the scheme would support up to 1 gigawatt (GW) of electrolysis capacity through a competitive bidding process held across three tender rounds. The first round is expected to cover 200 megawatts (MW), backed by an estimated budget of 797 million euros, with financial support provided as a fixed premium under 15-year contracts.
“The European Commission has approved a French State aid scheme to support the production of renewable and low-carbon hydrogen,” the Commission said in a statement, adding that the measure is “necessary and proportionate” under EU State aid rules. The Commission also noted that the scheme aligns with broader policy frameworks including the Clean Industrial Deal, the EU Hydrogen Strategy and the REPowerEU Plan.
Hydrogen produced under the programme will be directed toward industrial applications, with the aim of reducing greenhouse gas emissions in sectors that are difficult to electrify. The Commission said the initiative would contribute to France’s national targets of reaching 4.5GW of electrolyser capacity by 2030 and 8GW by 2035.
French authorities estimate the scheme could help avoid up to 1,100 kilotonnes of carbon dioxide emissions annually, supporting both national and EU-wide climate objectives.
