France chooses its own path: 1 GW hydrogen subsidy without strict green requirements
France has presented new rules for a major hydrogen auction. It concerns subsidies for no less than 1 GW of production capacity. A striking detail immediately draws attention. The government is not imposing requirements for RFNBO (Renewable Fuels of Non-Biological Origin). This is an important break with the standard European approach. This creates more room for alternative energy sources, such as nuclear energy.
With this decision, the French government is fully committed to a low price. By dropping the RFNBO requirements, the obligation to use exclusively renewable electricity is eliminated. Consequently, producers can now also make hydrogen with electricity from nuclear power plants. France has a large network of these plants. Therefore, the country can scale up much faster and cheaper this way. In short, the focus is now on the quantity of clean hydrogen and less on the specific source.
Major implications for the sector
This decision has major consequences for competition in the sector. Companies that can purchase electricity cheaply now have a significant advantage. This also applies if that electricity does not come directly from solar or wind. This will reignite the discussion about what truly "clean" hydrogen is. Some countries insist on green hydrogen only. France, however, is choosing a broader definition to decarbonize industry faster and is also opting for so-called purple hydrogen.
Reactions from industry
Reactions to the new rules are likely to be divided. Many companies will welcome the additional flexibility. It makes their business case much simpler. However, criticism is also possible. Opponents fear that this will slow down the development of renewable energy. It could also create an uneven playing field within Europe. It is therefore important to closely monitor the impact of this French course.
The key points at a glance:
- Scale: Auction for 1 GW of production capacity via electrolysis.
- Budget: Part of a larger support package of approximately 4 billion euros.
- Technology: Nuclear energy may be used for production.
- Goal: Rapid scaling and cost reduction for French heavy industry.
- Deadline: The first winners of the tenders are expected in early 2026.
Bold move
France is playing a clever but bold game here. By allowing nuclear energy, they significantly lower the threshold for major projects. Nevertheless, the question remains whether the European Union will fully accept this divergent route. For the market, this means in any case that there can be much more supply of low-carbon hydrogen in the short term. This is a scenario that the rest of Europe should look at carefully.
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