The French government has selected the first three projects to receive funding under its support mechanism for low-carbon hydrogen production through electrolysis, committing €778 million over 15 years. The selected projects represent 161.4 MW of supported electrolysis capacity, marking the first step toward the country's target of around 1 GW of installed electrolysis capacity.

The announcement was made by Minister Delegate for Energy Maud Bregeon and Minister Delegate for Industry Sébastien Martin during a steering committee meeting on France's National Hydrogen Strategy.

The support mechanism is one of the pillars of the country's revised National Hydrogen Strategy, adopted in April 2025, and is designed to encourage the production of low-carbon hydrogen for direct industrial uses while supporting the deployment of new electrolysis capacity across France.

Following the launch of the tender in December 2025, six bids were submitted, with three projects selected in the first funding round:

• Hydrozere, led by Engie Solutions H2, will receive support for 5 MW of electrolysis capacity to supply hydrogen for combustion applications in the metallurgical industry.
• eM-Rhône, developed by Elyse Energy, secured support for 61.1 MW of electrolysis capacity to produce low-carbon methanol for the chemical industry.
• FertHySomme, developed by FertigHy, was awarded support for 95.3 MW of electrolysis capacity to produce low-carbon nitrogen fertilizers using electrolytic hydrogen.

The French government noted that, for both eM-Rhône and FertHySomme, the funding awarded in this first round covers only part of each project's total planned electrolysis capacity.

The three successful applicants have eight weeks to provide the required financial guarantees and request the execution of their support contracts. Should one of the selected projects withdraw, the government said the next-ranked project may be designated as a beneficiary.

"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 low-carbon hydrogen," said Sébastien Martin, Minister Delegate for Industry.

According to the French government, the awards build on the country's electrification plan presented in April 2026 and its fertilizer plan announced earlier this month, both of which aim to strengthen France's industrial competitiveness while accelerating the decarbonization of key sectors.

Overview of the selected projects

The three selected projects target different industrial applications for low-carbon hydrogen. Hydrozere, developed by Engie Solutions H2, will supply electrolytic hydrogen to ArcelorMittal's steel plant in Saint-Chély-d'Apcher, replacing hydrogen currently produced from natural gas and reducing emissions from steel surface treatment processes.

eM-Rhône, led by Elyse Energy in Salaise-sur-Rhône, is an integrated e-methanol project that will combine electrolytic hydrogen with captured CO? to produce low-carbon methanol for the chemical and transport sectors. The facility is planned to include a 210 MW electrolyser, although only 61.1 MW of capacity is covered under this support scheme, as the remaining output is intended for synthetic fuel production, which is supported through other mechanisms.

FertHySomme, developed by FertigHy, will install a 200 MW electrolyser at a new low-carbon nitrogen fertilizer plant in Languevoisin-Quiquery. The hydrogen will be used to produce ammonia before being converted into ammonium nitrate. Under the first funding round, 95.3 MW of the planned electrolysis capacity is eligible for support.