The European Commission has approved France’s state aid scheme to support up to 1GW of hydrogen electrolysis capacity, marking a major step in scaling domestic low-carbon hydrogen production. The programme will provide long-term financial support through fixed premiums paid over 15 years, designed to bridge the cost gap between hydrogen produced from clean electricity and cheaper fossil-based alternatives.

The scheme will support both renewable hydrogen and low-carbon hydrogen produced using nuclear power — a politically sensitive inclusion given ongoing debates around EU classification rules. Funding will be allocated through three competitive tenders, with the first round targeting 200MW of capacity backed by approximately €797m [$922.2m]. Hydrogen output will be reserved for direct industrial use, focusing on sectors where electrification is not considered economically viable.