The European Commission has approved a French State aid scheme to support the production of renewable and low-carbon hydrogen.
The Commission said the scheme will support up to 1GW of electrolysis capacity through a competitive bidding process across three tender rounds.
It added that the first tender will cover 200MW with an estimated budget of €797m, with aid granted as a fixed premium under 15-year contracts.
Hydrogen produced under the scheme will be used for direct industrial applications to reduce greenhouse gas emissions.
The Commission noted the scheme will contribute to France’s targets of 4.5GW of electrolyser capacity by 2030 and 8GW by 2035.
It said the measure is necessary and proportionate under EU State aid rules and supports the Clean Industrial Deal, EU Hydrogen Strategy and REPowerEU Plan.
France expects the scheme to help avoid up to 1100 kilotonnes of CO2 emissions annually.