Government’s Carbon-Free Hydrogen Plan: Impact on SMEs and Renewable Sector

2023-11-14 06:00:00

Michaël TORREGROSSA

14.11.2023 at 07:00

While the government announced its support mechanism for the production of carbon-free hydrogen on September 19, some players denounce a system focused on the largest installations.

Are SMEs the ones left out in the government’s new hydrogen plan? This is what a collective of actors denounces in a joint letter. While an envelope of 4 billion euros will be mobilized to finance low-carbon hydrogen production projects, the new directions would mainly benefit large groups.

« The eligibility criteria for this mechanism, still under consultation, are revealing: it is necessary to demonstrate a minimum annual turnover of 100 million euros and five project references of more than 30 million euros. » point out the ten signatories*.

Forgotten intermediate projects

Another problem: that of the minimum size of projects. According to the government’s specifications, the latter must display at least 30 MW of capacity to be eligible for aid.

« Through this support mechanism, the national strategy would move towards massive infrastructure concentrated in a few areas. Rather than restricting the development of the hydrogen sector to a few types of projects and actors, the French ambition might be to promote projects of all sizes so that they contribute to a balanced energy transition, reconciling the creation of economic value , environmental and local » denounces the signatory companies. For 2022, there are more than 200 projects in development whose capacity is below the minimum support threshold and whose viability might be threatened.

Renewable sidelined

While the government’s massive plan to produce green hydrogen will require the availability of a large amount of electricity in the short term, the co-signatories are concerned regarding the lack of consideration of the renewable sector. To date, the government’s specifications give little importance to the origin of electricity (only 1 point out of 100).

Take inspiration from the European model

In contrast, the future European hydrogen bank aims to be much more open to medium-sized projects with support from 5 MW.

« Instead of opposing it, France should embrace this European framework to support its hydrogen strategy and allow the concomitant development of large industrial projects and territorial projects.re » believe the signatories.

* ARHYZE, BayWa.re, CVE, ENERTRAG, Hynoé, Qenergy, Valeco, Valorem and Synops Conseil

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