France’s clean hydrogen strategy has sparked renewed debate following the release of a critical report by the Court of Auditors (Cour des comptes) on June 5. The report questions the high public investment required to develop the hydrogen sector and recommends scaling down national targets. Industry stakeholders, including France Hydrogène, responded swiftly, defending hydrogen as a strategic asset essential for France’s energy transition, reindustrialization, and economic sovereignty.

The report: high costs and regulatory gaps

The Court of Auditors’ report examined public support for low-carbon hydrogen development and raised concerns about the financial burden, calling for more restrained and pragmatic objectives. The report identified three main shortcomings in current hydrogen policy:
Lack of consideration for the updated National Hydrogen Strategy (SNH) released in April 2025.

• Weak understanding of the demand-side mechanisms and real-world hydrogen use cases.
• Failure to assess the socio-economic and industrial sovereignty benefits of hydrogen deployment.
• The Court argues that current production goals—4.5 GW by 2030 and 8 GW by 2035—are overly ambitious and should be revised downward. It warns that the cost gap between hydrogen and fossil fuels cannot be indefinitely covered by public funds.

Industry strikes back: “this is no time for hesitation”

The hydrogen sector, led by France Hydrogène, pushed back strongly against the report. Industry leaders argue that the Court’s findings reflect a narrow and short-term view, failing to account for the broader value of hydrogen in the green economy.

Key criticisms include: The report ignores the April 2025 SNH update, which already adjusted targets based on deployment delays and technological maturity.
It underestimates hydrogen’s critical role in hard-to-decarbonize sectors like steel, chemicals, fertilizers, aviation, and heavy-duty transport—areas where battery solutions are not viable.

It omits the long-term economic and environmental benefits, such as cutting the energy import bill by €6 billion and creating up to 66,000 jobs by 2035.

According to Philippe Boucly, President of France Hydrogène: “Deploying the hydrogen sector is an investment in our future. To overlook its benefits exposes us to much higher long-term costs in lost competitiveness, dependence on fossil fuels, and missed climate targets.”

Not just subsidies: The need for stronger regulation

One of the core disagreements concerns how the sector should be funded. The Court warns of unsustainable reliance on public subsidies. In contrast, industry leaders argue that public support should focus on initial industrial scaling, not on long-term operations. Instead, they call for clear regulatory frameworks that drive market demand through obligations, similar to those already implemented in aviation fuels across Europe.

For example, using low-carbon steel would increase the cost of a car by less than 1%, while low-carbon shipping fuels would raise the price of imported sneakers by under 10 euro cents—figures seen as acceptable trade-offs for climate goals.

Infrastructure and sovereignty: Overlooked but crucial

Both sides agree that hydrogen transport and storage infrastructure is critical, but the report gives it little attention. France Hydrogène calls for the rapid deployment of systems like the IRICC (formerly TIRUERT), which could help spread infrastructure costs over time without requiring direct state aid.

Geopolitical context also matters: despite being a major agricultural power, France imports 75% of its nitrogen fertilizers, much from Russia. Clean hydrogen could enable domestic fertilizer production, reducing strategic vulnerabilities.

The debate underscores a core policy dilemma—fiscal caution versus strategic investment. For supporters of clean hydrogen, the transition is not optional, and success requires early commitment, targeted funding, and bold regulation.

"Other countries have already recognized the urgency and are moving fast," Boucly concludes. "France must not fall behind. The time to act is now—if we want to lead the industrial revolution of the green economy."