The recent adjustment to France's national hydrogen strategy, which reduces the electrolysis capacity target from 6.5 GW to 4.5 GW by 2030, demonstrates a more realistic approach to the challenges facing the sector. "This update reflects the reality on the ground, because the previous strategy was very ambitious without considering key factors affecting hydrogen production and application," says Donatille Nkunzi, Mentor at Women in Green Hydrogen, in an interview with Strategic Energy Europe. One of the main obstacles highlighted by Nkunzi is the insufficient technological maturity of the electrolyzers available in France. Currently, the country relies on technologies such as alkaline and PEM (Proton Exchange Membrane), but only has two local manufacturers of these key devices. "Since 2022, France has relied on the international market to import electrolyzers and complementary equipment, which has hindered project progress," explains the specialist. Adding to this situation are problems in the supply chain.
Companies are struggling to access the necessary equipment, forcing them to resize plants and adjust financing already granted, creating additional delays. Furthermore, the low, incentivized demand for green hydrogen complicates commercial viability.
"It's difficult to convince industries, such as fertilizer plants, to pay double or triple for green hydrogen-based products without clear benefits beyond emissions reduction," warns Nkunzi. According to data cited by the mentor, last year only 3% of global projects secured financing geared toward hydrogen use, reflecting the low level of effective adoption. "The government had to strive to be realistic about the market situation in terms of demand, perhaps due to the policy, which is being implemented slowly, even globally, not just in Europe.
I think French companies cannot satisfy the market.
In the meantime, they will need electrolyzers from other countries, such as those from Germany or UK.
For instance, Siemens Energy supplied 200 MW PEM electrolyzer for Air Liquide Normand"Hy Hydrogen project S, the specialist says
Initiatives to Strengthen the Value Chain Despite the challenges, France maintains a solid system of support schemes such as subsidies(IPCEI: Important Projects of Common European Interest), Contract for Difference (CfD) ,bidding, , albeit with bureaucratic processes that can take up to two years. A competitive factor for the country is the cost of electricity, which, thanks to nuclear energy, is around 50-55/MWh, half of what neighboring countries like Italy pay. "This is an advantage when companies sign PPAs, even if they use renewables, as the price remains stable," Nkunzi emphasizes. The government is also committed to developing specialized human capital.Institutions such as the IFP School have adapted their academic offerings to renewable energy and hydrogen, promoting master's degrees dedicated to the sector.
"France has schools that train engineers and hydrogen specialists, ranging from chemical engineering to materials science," says Nkunzi, who also actively works to include women in the sector through the Women in Green Hydrogen Network. The Key Role of Electrolyzer Manufacturers in French Energy Sovereignty Four electrolysis plants (McPhy, Elogen, John Cockerill, and Genvia) have currently been approved with support from the IPCEI.This is in addition to a 100 million grant for the first French membrane and electrolyzer plant using AEM technology in Allenjoie, operated by Gen-Hy.
Electrolysis plants such as McPhy, Elogen, John Cockerill, and Genvia will play a strategic role in the development of green hydrogen in France, not only due to their technological capabilities but also due to their impact on cost reduction and strengthening of the local industry. SEach manufacturer uses different technologies that allow for diversification of the offering and improve the efficiency of the electrolysis process," highlights Donatille Nkunzi.Companies such as McPhy and John Cockerill are investing in alkaline technology, the most widely marketed technology worldwide, while Elogen specializes in proton exchange membrane (PEM) electrolyzers, ideal for managing the intermittency of renewable energy.
Genvia, for its part, is developing solid oxide electrolyzers (SOEC), a high-temperature technology that, although not yet commercialized, promises efficiencies close to 95% by harnessing the process waste heat. "Local production of electrolyzers will reduce CAPEX for hydrogen projects by achieving economies of scale. One reason Chinese manufacturers are winning is that their products are cheaper, partly due to mass production.In contrast, in Europe and particularly in France, manufacturers are producing, but not at sufficient volumes to drive down unit costs.
Ultimately, it"s the volume that makes the difference," emphasizes Nkunzi.
This industrial capacity is seen as a pillar for guaranteeing energy sovereignty, optimizing cost efficiency, and promoting sustainable growth of the country's sector. French Hydrogen Market Outlook For now, the French strategy is focused on meeting domestic demand, especially in hard-to-decarbonize sectors such as heavy industry, refineries, and freight transport. "Currently, hydrogen deployment in France has a national objective due to the high demand from its industry, which strengthens energy sovereignty and generates local employment," says Nkunzi. It is worth noting that the recently published national strategy by the government aims to decarbonize sectors such as industry, refineries, petrochemicals, and heavy mobility. However, there are expectations that, once the domestic market is consolidated, the country can position itself as a supplier to other regions, including European or Asian countries such as Korea and Japan. The technological ecosystem is also showing signs of dynamism with the emergence of startups such as GeneHigh, which recently received 100 million from the government to develop a new electrolysis technology, known as IEM, that is more efficient and less dependent on expensive metals. Likewise, companies like Lhyfe have received 150 million to produce hydrogen for ammonia production, demonstrating the state's commitment to developing the industry. "France is today a good place to invest in green hydrogen thanks to its favorable regulatory framework and support mechanisms for both producers and technology manufacturers," says Nkunzi. With this comprehensive approach, France seeks to balance its green hydrogen aspirations with a pragmatic vision, addressing current limitations while strengthening its technological, human, and financial capacity to lead in the medium term.