France has signed a decree to allocate €4 billion ($4.3 billion) for low carbon and green hydrogen projects from 2024, minister of the energy transition Agnès Pannier-Runacher announced on Tuesday.

The future projects will have to be built in France to access the funds. Several tenders will be launched for projects to be implemented between 2024 and 2026, Kallanish understands. The measure intends to make green and low-carbon hydrogen selling prices competitive compared to H2 produced from fossil fuels.

Low-carbon and green H2 producers will receive government funds if their production costs exceed those of high-carbon hydrogen with the aim of narrowing the gap between the two types of fuel. “We first supported the construction of electrolysers or fuel cells and now we are ensuring the competitiveness of [green hydrogen] production,” Pannier-Runacher tells local broadsheet Le Figaro.

“Our plan for the energy transition aims to massively accelerate the production of low-carbon energies on the territory such as nuclear, renewable energies and hydrogen. This is also true for the storage and use of carbon dioxide. The roadmap was set in 2020 and we are implementing it with Roland Lescure, the minister of industry”, the minister adds.

The French hydrogen national strategy launched in 2020 includes investing about €9 billion of public funding to build 6.5 gigawatts of electrolyser capacity by 2030 reducing CO2 emissions by 6 million tonnes/year. The roadmap focuses on decarbonising industry and the mobility sector, while helping to stimulate research and innovation. A solid green hydrogen supply chain is expected to create 50,000-150,000 jobs.