2024-01-30 08:50:03
On the occasion of the Hydrogen Show which opens this Tuesday, January 30 in Paris, France is presenting this morning the 2023 results of its sector still under construction. The enthusiasm for this energy of the future is still there, but it comes up against market realities.
Hydrogen, provided it is green, is often presented as an ideal substitute for hydrocarbons. To serve as a raw material for industries that consume a lot of it, such as chemicals. But also as a source of energy, it is a fuel of the future for planes and boats. All you need is water and electricity to make it by electrolysis. A process a priori within the reach of all countries well endowed with green electricity so that it is decarbonized. With its nuclear electricity, France has an advantage in producing hydrogen (called yellow or purple according to the nomenclatures), it therefore chose in 2020 to build a complete sector, by manufacturing electrolysers on its territory as well as reloaders. The State has put 9 billion euros on the table, an effort comparable to that of its German neighbor.
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Despite this general mobilization, current production is still very far from the stated ambitions
The objective is to produce 6,500 megawatt hours in 2030 using low-carbon hydrogen. This corresponds to around a tenth of current nuclear electricity production. However, according to the figures presented in salon Hydrolution, for the moment, real capacities are much lower, around 30 MWH. 300 if we take into account projects in progress or already financed. No major projects have been announced for this year. Investors even canceled some of them. In this configuration, it is difficult to see how the sector will succeed in building the missing 95% in the next six years.
How to explain this shortness of breath
The euphoria has subsided due to lack of sufficient outlets. Target customers are put off by the price. Because green hydrogen is still three times more expensive than conventional hydrogen. Electricity makes up three-quarters of manufacturing costs. To be more competitive, producers therefore need cheap electricity. However, for the moment, the electricity sold by EDF, at 70 euros per MWH, is too expensive. To get a better price, they hope to sign long-term contracts with the French supplier, an option which has not yet materialized. Given the weak appetite of French customers, exports could enable production to expand. Provided that the missing infrastructure is built. Because initially the French sector was designed to be autonomous.
The most advanced countries in hydrogen production
Around forty countries have established a national strategy. Including Germany and the Netherlands oriented towards international trade. The European Union, Japan, India, the United States and China are the most advanced. All these countries actively support their sector. What will make the difference will be the level of subsidy granted not only to the producer, but also to the end customer to make this source of energy, which is today more expensive than hydrocarbons, more attractive.
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