It is almost a chestnut tree in the industrial sphere: after years of frenzy, the “hydrogen bubble” has finally burst in Europe. In addition to the difficulties encountered by many projects, there are delays and even a form of inertia on the part of certain governments who are slow to make budgetary decisions to support the sector.
France is not spared, quite the contrary: the “Global Hydrogen Review” recently published by the International Energy Agency shows that only 15% of French production projects announced by 2030 are at the stage of production. feasibility study (compared to 68% in Spain and 49% in Germany).
Faced with this observation, we would therefore be tempted to conclude that European ambitions for transition through the hydrogen vector have been “nipped in the bud”. However, by broadening the focus, a completely different landscape emerges. That of a demand which is emerging and which is consolidating in certain branches of the economy: the maritime transport sector in particular, in which firm agreements for the supply of carbon-free hydrogen are today the most numerous, but also the sector of refining.
2024 was a pivotal year, with the signing of major agreements, such as that between Air Products and TotalEnergies relating to the supply of 70,000 tonnes per year of renewable hydrogen to decarbonize refineries in northern Europe. energy company over fifteen years.
“Ratchet effect”. These pioneering sectors of renewable and decarbonized hydrogen have two points in common: they are already able to absorb the additional costs linked to the use of decarbonized or renewable energy. For other sectors, the additional cost of decarbonized hydrogen can nevertheless be overcome with targeted demand support mechanisms. This is the whole challenge of implementing the objectives of the European directive on renewable energies: extending a hand to sectors ready to take the plunge and to players ready to produce renewable hydrogen today, to create a “ratchet effect”, a catalyst for the deployment of hydrogen.
France has fallen behind its European neighbors. It must first fulfill its part of the “ecological transition contracts”, signed with each of the fifty highest-emitting industrial sites. This notably involves the release of financial support to reduce the price gap between “gray” hydrogen and its low-carbon alternatives. This targeted aid is essential and must be accompanied by a framework promoting more structural change. In heavy transport, the opportunities for hydrogen are substantial and measures are eagerly awaited, such as the integration into the incentive tax relating to the use of renewable energy in transport (TIRUERT) of a consumption obligation of renewable hydrogen.
The maritime sector must not be forgotten either: here too, France has enormous potential for reducing emissions, which it must exploit. Whether it is incorporated into TIRUERT or benefits from a specific mechanism, maritime must be taken into account in French ambitions for hydrogen.
France must rely on its strengths: a voluntary industrial community, a substantial maritime sector, and an energy opening to the world. These strengths will allow it to quickly find its place in an already globalized decarbonized hydrogen market.
David Martin is Vice-President France of Air Products
