France Selects Three Electrolytic Hydrogen Projects for €778m in 15-Year Subsidies

July 27, 2026

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by Charlie Curie (Gasworld) The French government has selected three electrolytic hydrogen projects for €778m ($887m) in subsidies. Selected after a call for tenders in December 2025, the winners will receive per kilogramme subsides over 15 years, as part of the government’s efforts to install 1GW of electrolyser capacity countrywide.

Unlike other EU auctions, the round offers support to projects using both nuclear and renewable power and is aimed at supplying hydrogen to industrial use cases where “no economically viable” electrification pathway exists.

While the three projects plan to install a combined 455MW of capacity, the subsidies will support only 161.4MW of the installations.

“The announcement of these first three winners represents a concrete step forward for the reindustrialisation of our country. By supporting projects in the chemical, metallurgical, and fertiliser production sectors, we are fostering the emergence of new industrial value chains based on decarbonised hydrogen,” said Minister Delegate for Industry, Sébastian Martin.

Engie’s 5MW Hydrozere project in Saint-Chély-d’Apcher, which plans to supply ArcelorMittal’s local plant for combustion in metallurgy processes, secured funding for the full electrolyser capacity.

Elyse Energy’s planned 240MW grid-connected eM- Rhône e-methanol project in Les Roches-Roussillon will see 61.1MW of its capacity subsidised by the scheme.

FertigHy’s 200MW FertHySomme green fertiliser project in Languevoisin-Quiquery is supported for 95.3MW to produce green ammonia and calcium ammonium nitrate. READ MORE

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France awards €778m of subsidies to first three winners of national clean hydrogen auctions (Hydrogen Insight)
France Selects Three Decarbonized Hydrogen Projects for 778 Million Euros (Fuel Cells Works)

Excerpt from Fuel Cells Works: Revised in April 2025, the National Hydrogen Strategy reaffirms the French ambitions in terms of decarbonization and technological development in order to achieve carbon neutrality by 2050, in compliance with France's European and international commitments. This strategy was developed in consultation with all the actors in the sector: industrial, project developers, equipment manufacturers and research stakeholders.

In order to continue this dialogue, Maud Bregeon and Sébastien Martin brought together the representatives of the sector as well as the services of the State. This steering committee has made it possible to address several structuring themes for the development of hydrogen in France: the state of the French industry of manufacturers of electrolyzers, the stakes related to the production and uses of electrolytic hydrogen, in particular industrial uses, decarbonized hydrogen to decarbonize refineries, sustainable fuels of synthesis for the air and maritime, research and transport.

The support mechanism for the production of carbon-free hydrogen is one of the pillars of the National Hydrogen Strategy. It aims to support, over a period of fifteen years, the production of decarbonized hydrogen intended for direct industrial uses and to support the development of new electrolysis capacities on the national territory.

Initiated at the end of 2024, the procedure conducted by the Directorate-General for Energy and Climate (DGEC) and operated by ADEME made it possible to pre-select ten candidates. A phase of competitive dialogue was then carried out during the summer of 2025 in order to best adapt the specifications to the reality of the projects.

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The designation of these first winners is a continuation of the electrification plan, presented on April 23, 2026, and the fertilizer plan, presented on July 9, which aims to bring out on the national territory a sector of production of decarbonized and sovereign fertilizers.

Maud Bregeon, spokesperson for the Government, Minister Delegate for Energy: "I am very proud to announce today the first three winners of the hydrogen production support mechanism. This marks an important step in the realization of the revised national hydrogen strategy presented in April 2025, which aims to make France a European leader in low-carbon hydrogen. The first three projects supported will make it possible to use low-carbon French electricity to produce hydrogen that will decarbonize our industry and will be able to produce fertilizers without using fossil gas. »

Sébastien Martin, Minister Delegate in charge of Industry: "The announcement of these first three winners is a concrete step forward for the reindustrialisation of our country. By supporting projects in chemistry, metallurgy and fertilizer production, we support the emergence of new industrial value chains based on decarbonized hydrogen. This first wave demonstrates that France has the actors, technologies and projects to build a more sovereign, more competitive and less dependent industry on imported fossil fuels. It is fully in line with our strategy of industrial recovery and strengthening our economic sovereignty. »

Project #1 – Hydrozère

HydroZère is a 5 MW electrolyzer project supported by Engie Solutions H 22. The project will be implemented in Saint-Chély-d'Apcher (48) in connection with the existing industrial site of Arcelor Mittal which it will supply low carbon electrolytic hydrogen. The volumes of decarbonized hydrogen produced by this electrolyzer will be intended to replace an existing use of hydrogen produced today by methane vapor reforming. This hydrogen shift produced from methane to electrolytic hydrogen will make it possible, thanks to the French low-emitting electric mix, to reduce greenhouse gas emissions related to the hydrogen supply of the site. Specifically, the hydrogen produced will supply the annealing furnace with the steelmaker to perform surface treatments of the steels to obtain a clean and glossy finish, and prevent the formation of oxides during heat treatments.

Project n°2 – eM-Rhône

eM-Rhône is a project located in Salaise-sur-Rhône (38) and supported by the French industrial SME active in the sector of decarbonized hydrogen and synthetic fuels Elyse Energy. This is an integrated methanol production project. Methanol will be synthesized from hydrogen and carbon dioxide. The production of the facility will be for the chemical and transport sectors, methanol being able to be used, among other things, as a fuel for ships, as a precursor for the production of synthetic fuel for air or in chemistry. These compounds are used for the manufacture of various products, such as paints, plastics, adhesives or even detergents.

The plant will produce its methanol thanks to the hydrogen produced by an electrolyzer with a power of 210 MW and carbon dioxide captured on the Le Teil Lafarge cement plant. Only the part of the project that corresponds to the volumes sold for uses other than the production of synthetic fuels is assisted in this support device. This corresponds to 61.1 MW of electrolysis. This electrolysis capacity will make it possible to produce 50 000 tonnes of methanol per year, or 750 000 tonnes over the duration of the support. The remainder of the facility was not eligible for the support mechanism since the use of hydrogen in transport is the subject of other support devices.

Project #3 – FertHySomme

The FertHySomme project is supported by the company FertigHy, which plans to install a 200 MW electrolyzer in Languevoisin-Quicery (80) within a new low-carbon nitrogen fertilizer production plant. The hydrogen produced will serve directly as an input for the synthesis of ammonia, before it is converted into ammonitrates. Beyond helping to establish a new industrial activity in France, this project will directly contribute to significantly strengthening French sovereignty in fertilizer production. It will also strengthen France's place in the production of low-carbon fertilizers, in line with the objectives pursued to reduce the environmental impact linked to agricultural practices.

With this project, the first of its kind on the territory, it is a part of the emancipation of agriculture in France that is initiated.

The first is this call for tenders makes it possible to support the project on a perimeter of 95.3 MW out of the 200 MW of the future installation. READ MORE