There was the scandal of photovoltaic solar panels, the production of which left France for China. However, France has a card to play in renewable energies. A hydrogen sector by electrolysis is emerging and strengthening. But be careful: to become sustainable, it will absolutely have to lower its costs and remain very competitive.
France has a great card to play in the renewable energy sector. The government has in fact launched a very ambitious green hydrogen plan. This is an energy of the future with multiple advantages. France is therefore anticipating, but it is also being very careful not to make the same mistake as at the beginning of the 2000s, with the scandal of photovoltaic solar panels, the production of which left France to go to Asia.
France well placed
Today, the objective is to build a solid green hydrogen sector, capable of facing powerful competitors, first and foremost China.
Hence the proliferation of projects to set up electrolyser factories in France. Electrolysis makes it possible to transform water into green hydrogen using electricity from renewable energies. There are multiple uses of green hydrogen for the decarbonization of polluting factories such as cement plants and steelworks and for the transport of goods by trucks or trains.
Several projects of gigafactories are underway in France, in Belfort, in Béziers, in Haut-Rhin, etc. The regions are also investing in numerous green hydrogen production and mobility projects. France is therefore very well placed. It must be said that the budget of seven billion euros for subsidies helps to emerge and consolidate the sector.
According to François Kalaydjian, Director of Economy and Monitoring at IFPEN (French Institute of New Energy Petroleum), “France has nothing to be ashamed of its hydrogen plan which is one of the most ambitious in the world, along with Germany” . Moreover, IFPEN estimates that carbon-free mobility by 2040 will involve electric vehicles and hydrogen solutions. François Kalaydjian indicates that hydrogen applied to transport “is a very good lever for decarbonizing the system”. Furthermore, the hydrogen sector could generate nearly 150,000 jobs by 2030.
The objective of this seven billion euro budget is to support the production and consumption of carbon-free hydrogen and to constitute a real ecosystem that would reduce costs. Green hydrogen is usually three to four times more expensive than gray hydrogen produced from fossil fuels, such as natural gas. If the conflict in Ukraine slows down or even reverses this trend, the situation is only temporary.
Facing the United States and China
For Xiaoting Wang, analyst at Bloomberg New Energy Finance, “we are not yet at the stage of intensive global competition”. France is all the better placed as it has taken a lead over the American and Chinese heavyweights.
In Europe, however, there are other projects gigafactoriesin the United Kingdom and Germany in particular. Xiaoting Wang adds: “In the United States, there are some big players like Plug Power and Cummins, but the market is not as mature as in Europe. There is no massive aid plan from the federal government like in Germany or France. »
On the other hand, China is a serious competitor. It is already in many economic and industrial sectors; it is also in renewable energies and in particular green hydrogen. In 2020, Beijing published a very ambitious hydrogen strategy. According to Xavier Regnard, analyst at Bryan, Garnier & Co, “China is only two or three years behind Europe and it is investing massively. Large electrolyser manufacturers, PERIC and Tianjin Hydrogen Equipment, have already emerged, although it is difficult to have a precise idea of their size.” There is also Longi Solar, which established itself in 2020 in solar and the production of monocrystalline silicon wafers, cells and panels and which is today investing massively in R&D for green hydrogen.
Even if France seems to have a little head start, China has a huge advantage: production costs much lower than those of French and European industries. “The cost of labor plays a big role, because the production lines, for limited volumes, are not yet automated and the necessary components can be easily purchased locally in China,” explains Xiaoting Wang.
This is the reason why lowering production costs must once again be the priority for French manufacturers specializing in electrolysis. François Kalaydjian underlines, “large-scale production in gigafactories will enable economies of scale to be achieved. The objective is to extend the lifespan of electrolysers and to significantly reduce the use of very expensive materials on the market, such as iridium, a very resistant metal which is used in the production of certain electrolysers.
But the problem is present. Chinese manufacturers are already attacking the European market, because their technology is integrated into projects in Europe and France which have turned to Chinese technologies.
