France's National Hydrogen Strategy: a turning point towards action

NaTran is delighted to see the foundations laid for the regulation of hydrogen infrastructures and the hydrogen market, under the authority of the French Energy Regulatory Commission (CRE).

The establishment of the regulated framework provided for in European legislation is an essential guarantee of visibility for all players in the sector, both in France and in the European Union. NaTran currently holds the vice-presidency of “pre-ENNOH”, the structure that brings together the EU's future hydrogen transport network operators (HTNO), prefiguring the European Network of Hydrogen Network Operators (ENNOH).

This framework will have to be designed differently from the electricity and gas infrastructures historically set up in mature markets. A balance will need to be struck between tariff attractiveness for early adopters and investment incentives for operators, for example via tariff smoothing mechanisms and public guarantees combined with long-term planning. To play its role fully, regulation will also need to avoid multiplying the number of derogations that would fragment the market to the detriment of hydrogen producers and consumers.

For the first time, the role of transport and storage infrastructures has been fully recognized. They are now rightly considered essential for connecting all producers to industrial consumers at the heart of France's future industrial basins, such as the industrial port areas of Fos-sur-Mer and Dunkirk, as well as the Chemical Valley, the Seine Valley and the Moselle.

The French government's stated priority - 500 km of network by 2030 - is to deploy infrastructures within hydrogen hubs (so-called “intra-hubs”) and connect them to storage infrastructures. This is a significant first step, and the projects initiated by NaTran in these national hubs are in line with this trajectory.

The study carried out by NaTran with France's electricity transmission system operator RTE in 2023 demonstrated the benefits of co-optimization between the electricity and hydrogen networks. Analyses of the challenges facing electricity and gas systems show that the main advantage of dedicated hydrogen transport infrastructures is to connect hydrogen basins with salt storage facilities. By providing an outlet for renewable electricity production and massive energy storage, the network and underground hydrogen storage could generate up to 1.5 billion euros in annual benefits for the community by 2050. NaTran is also continuing its work on the master plan for the French H₂ network and its potential for enhancing the flexibility of the power system.

But while the national strategy favors domestic hydrogen production in the short term, in the longer term, it also specifies that a European hydrogen transport network could see the light of day. This would link consumption areas to regions with lower production costs than France.

The benefits associated with these cross-border low-carbon hydrogen infrastructures are manifold:

• Greater security of supply for consumers, thanks to the abundance of connected production and storage facilities;
• Increased competitiveness for manufacturers, who will have access to carbon-free hydrogen produced in France or imported from the Iberian Peninsula, where sunshine and wind conditions are particularly favorable;
• Optimization of hydrogen production costs thanks to flexible operation of electrolysers during the most relevant periods (mid-day photovoltaic production, night-time nuclear availability, etc.), while ensuring uninterrupted supply to industrial processes via storage facilities.

Industrial consumers are not mistaken. On November 7, 2024, a Call for Expressions of Interest (AMI) was launched for the H2med project, an infrastructure that aims to interconnect hydrogen networks from the Iberian Peninsula to North-West Europe, involving Portugal, Spain, France and Germany. Nearly 170 companies have responded, and over 500 projects have been declared, confirming H2med's role in helping European players achieve their decarbonization and reindustrialization objectives.

In the meantime, the time required to bring these infrastructures into service calls for in-depth work (consultation, regulation, technical and economic studies, etc.), which is mobilizing NaTran's teams.

After a first successful consultation dedicated to Hydrogen market players in 2021, NaTran and Teréga have decided to reinvest in this dialogue in 2025 to update and amplify this dynamic. A consultation process aimed at all stakeholders and players in the H₂, CO₂ and CH₄ markets has been underway since April.

The aim of this consultation is to strengthen the shared vision and provide medium- and long-term visibility on hydrogen infrastructures up to 2035. One of its aims is to contribute to the public authorities’ work on the proposed routes for future hydrogen networks up to 2026.

Finally, at European level, NaTran and its German subsidiary are involved in the development of the German hydrogen network. With the support of the French government, NaTran obtained valuable grants from the European Union earlier this year, as part of the Connecting Europe Facility (CEF) program, to finance feasibility studies for several cross-border infrastructure projects.

Only an integrated European hydrogen market can meet the needs of French and European industry in terms of decarbonization and competitiveness. Recently, the French President, Emmanuel Macron, and the new German Chancellor, Friedrich Merz, jointly expressed their commitment to efficient investment in key networks, particularly in cross-border energy infrastructure, in a joint statement.

NaTran intends to be part of this new dynamic, and to contribute all its expertise to the success of these forward-looking projects.

Sandrine Meunier is the CEO of NaTran