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Summary of our market study
Estimates of the French hydrogen market range from 1.4 to 3.5 billion euros, depending on hydrogen prices.
The global hydrogen market is valued at $190 billion and is expected to grow at an average annual rate of 9% until 2030.
According to the IEA, hydrogen's role as an energy carrier, although not an energy source in its own right, is expected to contribute 6% to emission reduction measures by 2050.
In France, hydrogen production exceeds 900,000 tonnes per year. Hydrogen is mainly used in petroleum fuel desulfurization (60%), fertilizer and ammonia production (25%), and various chemical applications (10%).
Growth is underpinned by a national strategy that includes over €3 billion in public funding for low-carbon hydrogen technologies.
The market includes major players like Air Liquide and emerging companies like McPhy, which focus on refueling stations.
Current production methods rely heavily on fossil fuels, with 94% of hydrogen coming from natural gas, hydrocarbons or coal.
Water electrolysis accounts for just 6% of national hydrogen production.
The cost of "green" hydrogen produced by electrolysis is between 3 and 15 euros per kilogram. The cost of "grey" hydrogen produced by steam reforming of natural gas or coal gasification is between 1 and 3 euros per kilogram
Storage and transport remain difficult aspects of hydrogen use, due to its low density under normal conditions.
Several key players dominate the landscape.
- Air Liquide: Pioneer in industrial gases and hydrogen technologies.
- McPhy: Manufactures high-efficiency electrolyzers and is developing a network of hydrogen stations.
- Genvia : The fruit of collaboration between the CEA and industrial partners, Genvia aims to industrialize hydrogen production technology using high-temperature electrolysis.
- Hélion : Specialist in hydrogen fuel cells.
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Summary and extracts
1 Market overview
1.1 Definition and scope of the study
Although hydrogen is mainly derived from fossil fuels, its production and consumption represent a real challenge for the development of a greener, more sustainable economy. A renewable gas that emits only water when consumed, hydrogen is today used mainly for chemical and petrochemical applications, notably in fertilizer production or in the oil refining process.oil refining process. Bhile not a source of energy, hydrogen is an energy carrier that must be produced and stored before use. Its energy can be recovered in two ways:
- by combustion, where one kilo of hydrogen releases three times more energy than one kilo of gasoline, and produces only water ;
- by using a fuel cell, where hydrogen is coupled with an air supply to produce electricity, releasing only water.
The global market is growing fast, estimated at $170.14 billion in 2022, and is set to expand at a CAGR of 9.3% to 2030. It is made up of major players such as the French group Air Liquide, world leader, McPhy and Hélion. TheEuropean Union and the United States are the main players in the development of policies for this sector.
In France, this market is seen as one of the future, even if the use of hydrogen as an energy carrier is limited for the time being. Its production cost still makes it uncompetitive compared with other types of energy, especially when we're talking about green hydrogen, i.e. produced from renewable energies or emitting very little CO2. However, the French government, in collaboration with the European Commission, is considering long-term strategies for financing private projects to develop the hydrogen industry. In particular, hydrogen-powered mobility is a major issue, with the development of hydrogen filling stations throughout France.
Thanks to advances in electrolysis technology, hydrogen can be produced in a low-carbon, cost-effective way. This energy carrier could play an important role in the renewable energies sector for a variety of uses, such as :
- to store solar or wind energy, via a fuel cell, and release it ;
- to power zero-emission vehicles, with the added advantage of a long range;
- for industrial applications: to decarbonize industrial processes such as fertilizer manufacture, refining, steel and cement.
Research and development are dynamic, supported by the French National Research Agency and the Atomic Energy Council.
1.2 A bright future for the global hydrogen market
In ****, the global hydrogen market is estimated at $***.** billion, and is expected to grow at a CAGR of *.*% until ****.
Global hydrogen market development projections World, **** - ****, in $ billions Source: ****
Growing demand for cleaner fuels and increasingly stringent government regulations to reduce the use of petroleum products are driving the adoption of ...
1.3 A fast-growing French market
Industrial hydrogen production in France totals over ***,*** tonnes a year. The main uses are desulfurization of petroleum fuels (***) account for **% of this production. It generates **.* Mt of CO* emissions, representing around *% of French national emissions [***].
No information is available on the size of the French market, but we can estimate it ...
1.4 France, a country heavily dependent on hydrogen imports
To study French foreign trade in hydrogen, we use the HS code ****** for hydrogen.
Exports:
French hydrogen exports by value France, **** - ****, in $ millions Source: ****
Between **** and ****, annual French hydrogen exports experienced several variations. A significant drop was observed between **** and ****, with a decrease of $*.*** million, representing a decline rate of ...
2 Demand analysis
2.1 France's main hydrogen customer sectors
Hydrogen demand in France is still dominated by traditional industrial uses. Indeed,the main market is the desulfurization of petroleum fuels (***).
Main uses for hydrogen France, ****, in Source: ****
These sectors should see their share of hydrogen demand gradually decline as other user sectors such as transport, power generation and heating ...
2.2 Refining and fertilizer production, the two main uses for hydrogen
Refining:
Hydrogen has a special function in refining, as it removes sulfur from fossil energy sources, a process known as petroleum desulfurization. Introduced at high temperature and pressure, it reacts with the sulfur naturally contained in hydrocarbon molecules to form hydrogen sulfide (***), which is then removed. This makes hydrocarbons less polluting ...
2.3 Replacing traditional industrial sectors with innovative ones
Subject to an ambitious policy and substantial investment, new uses - such as mobility, new industrial processes or injection into gas networks- could gradually replace the traditional uses we mentioned earlier. However, this reversal in demand is likely to take place over the long term, and historical sectors are likely to ...
2.4 The growing use of renewable energies
Hydrogen can be used to store electricity, particularly that produced from renewable energies, and can also be used as a fuel in electric vehicles equipped with fuel cells. This energy carrier could therefore be an essential pillar of the energy transition, provided we decarbonize production, which today remains largely dependent on ...
3 Market structure
3.1 The hydrogen value chain
Source: ****
The hydrogen value chain can be broken down into several stages:
hydrogen production, which can be carbon-based or decarbon-based, depending on the raw material used. Most hydrogen today is produced from fossil fuels (***), but electrolysis is becoming increasingly popular; storage and transport: most often in gaseous form, hydrogen is stored ...
3.2 Hydrogen production in France
Production methods :
France, aware of hydrogen's potential in terms of reducing greenhouse gas emissions and boosting competitiveness, was one of the first countries to actively support this sector. As of ****, resources have been allocated to promoting hydrogen through the Future Investment Program (***).
Currently, hydrogen produced from fossil fuels accounts for the ...
3.3 The difficulties of storing and transporting hydrogen
Hydrogen can only be stored and transported on one condition: by increasing its density.
Under conditions of atmospheric pressure and ambient temperature, it takes **m* to store *kg of hydrogen[***]. To remedy this shortcoming, hydrogen is stored and transported :
in gaseous form: hydrogen can be compressed from a few tens to ...
4 Offer analysis
4.1 Hydrogen, an energy carrier at a variety of prices
On Earth, hydrogen is essentially found in combined form - with oxygen in water, with carbon. Hydrogen is therefore not an energy source, but an energy carrier. It must be produced by extracting it from its compounds. Then, by bringing it into contact with other chemical elements, such as oxygen, it ...
4.2 Public authorities: essential support for the development of the hydrogen industry
The national strategy for the development of decarbonated hydrogen, announced by the French government on September *, ****, will benefit from * billion euros in public support through to ****. This initiative aims to guarantee France's technological sovereignty and deploy *.* gigawatt-hours of electrolyser capacity across the country. The hydrogen produced will be used to reduce ...
4.3 Hydrogen filling stations still unevenly distributed across France
When it comes to using hydrogen as a fuel, distribution is also of strategic importance, with refueling stations to be set up all over the country.in its review of the national hydrogen strategy, France Hydrogène is proposing a set of targeted measures to optimize the deployment of hydrogen in ...
5 Regulations
5.1 France's energy transition law for green growth
The mobility plan :
As reported by Les Echos, the French energy transition law for green growth has required all companies with more than *** employees to set up a mobility plan for its employees since ****, making their daily commutes more efficient and less polluting.
Formerly known as the PDE (***) obliges companies to ...
5.2 A greener French tax system
It may be interesting to take a look at the tax implications of purchasing or leasing vehicles for companies, using the information provided by Sesame LLD.
Current VAT
vAT on the purchase of private vehicles is not recoverable, except in the case of professions involving the purchase of a vehicle (***).
Taxes ...
6 Positioning the players
6. Segmentation
- Mc Phy
- Hydrogenics
- Linde
- STEP (Hype)
- Symbio
- Ballard Power systems
- Toyota
- Faber Cylinders
- Forvia (ex Faurecia)
- Hydrogen Council
- Air Liquide
- EDF
- HDF (Hydrogène de France)
- Atawey
- Lhyfe
- Safra
- Elyse Energie
- Roth2
- Genvia
- Hélion Astom Hydrogen Alsthom
- Chemours
- HySiLabs
- Technip Energie
- Verso Energy
- 45-8 Energy
- Vallourec
- HEF Groupe
- Rely Solutions
- Fives Group
List of charts presented in this market study
- Global hydrogen market projections
- Cumulative emissions reduction by mitigation measure in the "zero emissions" scenario
- Hydrogen sales forecast
- Main uses of hydrogen
- Breakdown of consumption volumes by sector in the "Ambition 2030" scenario
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Latest news
Nuclear power: ways to finance France's €67 billion program - 17/09/2024
- - Total estimated cost of the EPR2 program: 67.4 billion euros.
- - Expenditure already committed and planned by EDF: 3 billion euros spent up to the end of 2024, a further 2 billion planned in 2025, and 3 billion in 2026.
- - Unlike the UK model, there are no plans to charge French consumers via their electricity bills during the construction of these plants.
- - No recourse to private funds is envisaged to finance the EPR2s, because France has just renationalized EDF.
- - French public finances would take on a substantial share of the construction risks. France is considering a zero-interest loan for the duration of the construction period to reduce the project's financing costs.
- - EDF intends to finance half of the EPR2 project, in line with a desire not to opt for a 100% regulated model and to retain ownership of these plants over the long term.
Lhyfe, the Nantes-based start-up challenging China's green hydrogen giants - 06/09/2024
- - According to Bloomberg, Lhyfe is one of the Top 10 green hydrogen producers worldwide.
- - In the Top 5 in terms of installed capacity. competitors
- - Sinopec's capacity exceeds 20,000 tonnes per year.
- - Lhyfe is positioned behind Norway's Ovako.
- - Almost on a par with China's Huaneng Sichuan Energy and Shanxi Pengfei.
- - Partnership with Nel (Norway) and Plug Power (USA) to adapt electrolyzers.
- - Rapid growth in Germany, the Netherlands and the UK.
- - Presence in ten countries.
- - Project in Sweden to produce up to 100 tonnes of green hydrogen per day.
- - Target installed capacity: 3 GW by 2030.
- - Sales forecast for this year: 5 million euros, aiming for 100 million in 2026.
- - Matthieu Guesné holds just under 20% of the capital, ahead of family office Noria.
Fives invests to optimize its hydrogen liquefaction equipment - 24/08/2024
- - HyGen program budget: 7.5 million euros
- - HyGen program duration: 4 years
- - Anticipated sales for Fives thanks to the HyGen program: 15 million euros within three years
- - Expected job creation thanks to HyGen program: 85 to 90 jobs within four years
- - Main location of jobs created: Golbey site (Vosges)
The first fuel cell gigafactory in Bordeaux - 18/08/2024
- - HDF Energy plant inauguration date: May 30 (year not specified in extract).
- - Plant location: Former Ford site in Blanquefort, Gironde.
- - Production capacity announced: Fuel cells over 1 MW.
- - Application sectors: Maritime transport via partnership with ABB, heavy rail mobility, electricity generation for public power grids, mainly for export.
- - Production start date: 2025.
- - Gigafactory investment: €20 million.
- - Number of employees planned: Around 100.
- - Initial production capacity planned for 2025: 100 MW of fuel cells per year.
- - Target production capacity for 2030: 1 GW of fuel cells per year.
ArcelorMittal officially becomes Vallourec's largest shareholder - 06/08/2024
- - Sale of Apollo shares to ArcelorMittal: 955 million euros
- - ArcelorMittal holds 28.4% of the voting rights and 27.5% of the capital of Vallourec.
- - The company now has 14,000 employees, including over a thousand in France.
- - In 2023, gross operating income of 1.19 billion euros on sales of 5.11 billion euros.
EDF to produce Arabelle turbines itself - 29/07/2024
- - Number of employees transferred to EDF: A total of 3,300 employees, including 2,500 in France, affected by EDF's control of General Electric's nuclear activities inherited from Alstom.
- - Capacities of Arabelle turbines: These are claimed to be the most powerful in the world, powering the latest generation of French EPR nuclear reactors as well as Russian Rosatom's VVERs.
- - EDF's stake in Framatome: EDF became a 75% shareholder in Framatome following the breakup of Areva in 2015.
- - To integrate GE's Steam Power division, EDF created a new subsidiary called Arabelle Solutions
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