France’s €520/Ton CO₂ Problem: Hydrogen Is Too Expensive For Transport - CleanTechnica

The article discusses the findings of a French audit on the economics of decarbonized hydrogen production via electrolysis, revealing that the cost of avoiding CO₂ emissions through this method is approximately €520 per ton. This figure far exceeds typical societal costs for CO₂ reduction technologies, highlighting that electrolytic hydrogen remains economically unviable without substantial public subsidies. France’s National Hydrogen Strategy (SNH2), launched in April 2025, aims to rapidly expand electrolytic hydrogen production with over €9 billion allocated for this purpose. However, the Cour des comptes report underscores that even optimistic assumptions about energy prices do not significantly improve the economic outlook, and the reported €9 billion in subsidies likely underestimates the true financial burden due to unaccounted infrastructure costs and indirect subsidies. The audit also reveals a complex web of overlapping subsidies that effectively lower the cost burden for hydrogen producers. These include mechanisms like the European Emissions Trading Scheme (ETS), which, by increasing carbon costs for fossil-fuel-based hydrogen