The French government has launched a new Covid-19 recovery plan that includes Euro 30 billion to invest in the energy transition. As part of this, the top priority is the creation of a hydrogen economy, with Euro 2 billion to be invested by the end of 2022 and Euro 7.2 billion up to 2030. The funds will be used for research and development (R&D) activities and industrial electrolysis development projects.
These figure show how much hydrogen has grown in importance in state-level energy strategies. The French government is soon likely to present the country’s new plans for hydrogen. Enerplan, the French solar association, stressed the importance of solar in the production of green hydrogen. “PSolar production, along with other renewable energies, can form the basis of great ambition for the production of carbon-free hydrogen,” stated the trade body. “The storage of renewable electricity is a challenge for the years to come, hydrogen coupled with solar parks is a particularly suitable response.”
The package also includes €7 billion for building renovations. However, the only reference to renewables in this category is for renewable heat.
In addition, the French government has decided to allocate €11 billion to decarbonize the transport sector. In the electric vehicle sector, it has earmarked €100 million for the development of terminals for electric vehicles, to achieve the nation’s target of 100,000 terminals by 2021.
REGlobal’s Views: Until the past few years, the green hydrogen market was diminutive. However, given the vast benefits of the technology, several countries are pushing its uptake. Recently announced national targets and pilot projects will help produce enough volume to realize substantial capex declines beyond 2025. Therefore, despite its current lack of cost competitiveness, green hydrogen will be a growth market in the near term.