France opens second 250MW low-carbon H2 subsidy round

Market: Hydrogen
02/09/26

France's ecological transition agency Ademe has opened applications for the second round of the country's hydrogen production support scheme, targeting 250MW of electrolysis capacity and offering operating subsidies for renewable and low-carbon electrolytic hydrogen projects.

The programme is structured as a competitive bidding procedure and will provide operating support for up to 15 years, with bids capped at €4/kg of hydrogen. The round forms part of France's wider plan to support 1GW of electrolysis capacity across three allocation rounds.

Eligible projects must have between 5MW and 250MW of electrolyser capacity and supply hydrogen primarily for industrial applications. Projects can produce renewable hydrogen, low-carbon electrolytic hydrogen, or a combination of the two.

Developers must demonstrate that at least 30pc of the electricity required for hydrogen production has been secured for a period of ten years. They must also show that at least 60pc of hydrogen output, or production of hydrogen derivatives, is backed by offtake commitments. Support is limited to projects supplying hydrogen for industrial uses, with power generation, gas grid injection and most transport applications excluded.

Projects must ensure that no more than 25pc of supported electrolyser capacity relies on stacks manufactured in a designated dominant third-country supplier, in line with the EU's Net-Zero Industry Act requirements.

Applicants will also be required to provide a financial guarantee of €20,000/MW of supported capacity.

Successful projects must reach financial close within 30 months of signing a support contract and begin operations within 60 months. Assuming contracts are awarded in 2027, projects would be expected to enter service around 2032.

Applications are open until 2 October. Ademe will shortlist a minimum of three projects and a maximum of 30. Shortlisted candidates will then be invited to submit final subsidy bids by the end of the year, according to France's energy and climate directorate general (DGEC).

The launch follows the conclusion of the scheme's first allocation round. In July, the French government selected three renewable and low-carbon hydrogen projects with a combined 161MW of electrolysis capacity to receive €778mn ($902mn). The projects will supply hydrogen to the chemicals, fertiliser and steel sectors.

France plans to award support across three rounds under the mechanism. Following the current 250MW allocation round, a third and final auction targeting a further 550MW of electrolysis capacity is scheduled for 2027.

By Pamela Machado

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