PVTIME – France’s recently proposed 2027 draft finance bill has secured additional state funding for its domestic low-carbon hydrogen sector, receiving positive feedback from the national industry association France Hydrogène. The centrepiece of the package is a €1.2 billion fund earmarked for the second tranche of the country’s MSP.
This funding stream is designed to reduce the risk of large-scale rollout of low-carbon hydrogen across hard-to-abate industrial sectors, including steel-making, fertiliser manufacturing, and chemical processing. Building on the first MSP round announced earlier in 2026, it is intended to encourage project sponsors to make formal final investment decisions for industrial hydrogen facilities.
Alongside subsidies for hydrogen production, the draft budget establishes the groundwork for an innovative dual-auction framework tailored to synthetic e-SAF. This custom-built auction model aims to reconcile the long-term investment needs of project developers with the shorter-term purchasing commitments of aviation fuel buyers. Policy architects hope that this tool will transform France’s extensive pipeline of e-SAF proposals into tangible industrial capacity in compliance with the EU-mandated ReFuelEU Aviation obligations.
The legislative text also introduces the IRICC. This instrument aims to create a stable market demand for renewable and low-carbon hydrogen in the areas of refining, marine synthetic fuels, and road transport. Industry forecasts suggest that close to EUR 2 billion in private capital could be mobilised.
In a public statement, Nicolas Brahy, President of France Hydrogène, emphasised that 2027 is a critical year for French hydrogen, with several major projects awaiting final investment approvals. The association emphasised that these three complementary budgetary measures fully align with the priorities agreed at the National Hydrogen Strategy Steering Committee meeting held in July 2026. If parliament passes the draft finance bill, the combined policies are expected to accelerate the deployment of electrolysers and safeguard thousands of projected green industry jobs in France.
