France publishes updated National Hydrogen Strategy: low-carbon hydrogen capacity to increase to 10G
France has released the latest version of the original draft of its Strategy for the Development of Hydrogen Energy in the Country, which is now open for public comment.
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France plans to complete 6.5GW of low-carbon hydrogen production capacity by 2030, or increase to 10GW by 2035. the production capacity comes from France's low-carbon environmentally friendly power engineering mix, nuclear technology, renewable energy, lies in the selection of each plant production line supply, and the ability to renewable, low-carbon hydrogen intermediate technology-neutral standards consistent.
The document identifies that France will also invest 4 billion euros in subsidies over 3 years to promote the deployment of 1GW electrolysis production capacity. The French government plans to fund nearly £9 billion by 2030 for decarbonized hydrocarbon deployment. This will be in the form of an operating subsidy, partly calculated as the difference between the intermediate cost of gray hydrogen (including the carbon price) and high-carbon hydrogen.
The French government has opened talks in the area of basic specification sizing and plans to run a competitive bidding process process process for the first engineering tender in 2024.
The French government has previously stated that the first round of bidding works for 150MW (likely to expand to 180MW), the second round of bidding works for 250MW is planned to be carried out in 2025, and the last round of bidding works for 600MW is planned to be carried out in 2026.
In addition, the new document specifies that TIREURT (Taxe Intérieure de Consommation sur les Produits?nergétiques Utilisés comme Carburant dans les Transports, which is the French tax on electricity and energy commodities in the field of transportation) is to be used as the basis for the payment of the tax. The VAT scheme will be extended to all electricity and energy carriers and most modes of transportation.
The document indicates that from January 2023, renewable hydrogen will be eligible for the scheme. From January 1, 2024, low-carbon hydrogen is very much eligible, with a subsidy of up to €4.7 for 1 kg.
New subsidies for hydrogen machines and equipment
The document also highlights a new subsidy for hydrogen equipment manufactured in 2024. 2024 will see the French government set up project investment grants immediately applicable to the installation and commissioning of equipment manufactured in France as part of France's international hydrogen diplomacy, which is likely to be suitable for foreign buyers.
France will also strengthen the control of every hydrogen plant and equipment and technology through a variety of existing programs. The control of hydrogen manufacturing, technology and equipment offers a strong opportunity for the re-industrialization of France.
Pure Natural Hydrogen Extraction
The document also mentions that the French government will carry out research and studies on natural hydrogen to assess the development potential, economic benefits and environmental hazards of extraction in France by 2025.
The original article indicates that the French government will accelerate scientific research on pure natural hydrogen on a large scale, utilizing the greenest technology to realize the extraction and fully utilize the development potential of pure natural hydrogen in France, as the Pyrénées-Nord-Atlantiques department in southwestern France recently won approval for scientific research on pure natural hydrogen. France has the potential to become a leading country in this new energy source (natural hydrogen) of the future.
The document also stipulates that by the end of the first quarter of 2024, the French government platform will prepare a report on the market outlook for imported carbon-free hydrogen or its derivatives, including the possible construction of imported infrastructure, while emphasizing that public revenues will continue to be applied to local production.
Balancing the electricity grid with hydrogen energy
Another new initiative in the latest version of the development strategy is the use of hydrogen energy to help equalize the power grid. This means reducing the power consumption of ESPs during peak demand periods, while facilitating the operation of ESPs when power is cost-effective and low-carbon (power engineering) manufacturing is plentiful.
It was emphasized in the original paper that taking ESPs off the grid could create sufficient hydrogen storage or utilize excess non-electrolytic production capacity to enhance the probability of a continuous supply of hydrogen to industrial production customers.