France has is set to unveil a €4bn ($4.3bn) subsidy package to support low-carbon hydrogen projects through Contracts for Difference (CfDs), according to reports.
On Monday (August 28), the French Government said it would adopt a decree released €4bn to subsidise the development of low-carbon hydrogen production capacity, as part of the €9bn ($9.76bn) of public support announced in 2020.
It has been reported that the decree is planned to support multiple projects totally 1GW of capacity for the production of 140,000 tonnes of hydrogen per year, with the first supported project expected to come online in 2026.
Through 15 years of support, the subsidies are expected to come in the form of CfDs to close the price gap between low-carbon hydrogen and fossil-based hydrogen.
With the decree expected to be adopted in the coming weeks, Agnès Pannier-Runacher, French Minister of Energy Transition, was said to be travelling to visit an Important Projects of Common European Interest (IPCEI)-supported low-carbon project being carried out by Boréalis and Hynamics.
Additionally, the Minister was said to then be headed to the site of John Cockerill’s planned 1GW electrolyser factory which is due to start operations at the end of 2023.
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