French Hydrogen Lobby Seeks $12 Billion in Aid to Boost Use
French Hydrogen Lobby Seeks $12 Billion in Aid to Boost Use
(Bloomberg) --
France needs 10.35 billion euros ($12 billion) in hydrogen subsidies over the next decade to kick-start large-scale demand and production of the carbon-free fuel, a lobby group said.
The proposal comes as the French government prepares an economic stimulus package, which will include help for the energy transition and for hydrogen use. Countries around the world are advocating cleaner fuels, and hydrogen is gaining popularity because it doesn’t emit any carbon.
“Hydrogen is ticking all the boxes -- the fight against climate change, air quality and an opportunity to gain industrial leadership,” said Philippe Boucly, chairman of French hydrogen trade body, Afhypac. “If we miss that train, others will take it all.”
Germany and the European Union have presented plans to massively drive down the cost of producing hydrogen by electrolyzing water. The process is cleaner than extracting it from carbon-emitting natural gas, but is currently more expensive.
Hydrogen, which has been used for decades by oil refiners and chemical makers, can be instantly converted into power via so-called fuel cells that emits just vapor in the process, providing a possible alternative to batteries.
Industry Backing
French gas giants Engie SA and Air Liquide SA, electrolyzer maker McPhy Energy SA, and car-part manufacturer Faurecia SE -- which has a stake in a fuel-cell company -- are among those advocating for a greater use of hydrogen.
The 10.35 billion euros of aid would trigger 24 billion euros of investment by 2030, according to a plan presented by Afhypac Thursday. That includes the construction of 7 gigawatts of electrolyzers to produce clean hydrogen, and pipelines and service stations to market the gas.
Part of the package would go to subsidize the purchase of electric vans, trucks, trains and boats equipped with fuel cells, and would help large industrial users switch to clean hydrogen, the lobby group said.
By 2030, half of France’s expected hydrogen demand could be renewable or low-carbon, avoiding 4 million tons of CO2 emissions that year, Afhypac said.
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