EU approves 144m French hydrogen project for fertiliser industry

The European Commission has approved €144 million in French state aid to support renewable and low-carbon hydrogen production for the fertiliser sector. The funding will back a project by HyforSeeds aimed at decarbonising ammonia production in eastern France.

For Europe’s electronics and industrial technology ecosystem, the move highlights the growing role of hydrogen infrastructure, electrolysers and industrial electrification in the continent’s energy transition — areas closely watched by eeNews Europe readers.

French hydrogen project targets ammonia decarbonisation

France notified the European Commission of the €144 million support package for HyforSeeds, a subsidiary of hydrogen producer Hynamics. The project involves installing and operating a 50MW renewable and low-carbon hydrogen production unit at the site of fertiliser and industrial chemicals manufacturer LAT Nitrogen.

The facility will be located in the Ottmarsheim-Chalampé industrial zone in the Haut-Rhin region of eastern France. France will deliver the aid as a direct grant covering part of the investment costs for the electrolyser and related infrastructure.

Once operational, the hydrogen produced by the unit will be used to decarbonise ammonia production at the fertiliser plant. According to the Commission, the project will replace up to 15% of the hydrogen currently produced using fossil fuels with renewable and low-carbon hydrogen.

This shift is expected to reduce greenhouse gas emissions by at least 70% compared with conventional fossil-based hydrogen production. Overall, the project could prevent more than 46,000 tonnes of CO₂ emissions per year.

Commission: aid supports strategic hydrogen development

The European Commission assessed the measure under EU state aid rules, particularly Article 107(3)(c) of the Treaty on the Functioning of the European Union and the bloc’s guidelines for climate, environmental protection and energy.

The Commission concluded that the funding promotes the development of renewable and low-carbon hydrogen, a key component of the EU’s energy transition strategy. It also determined that the aid provides an incentive effect, meaning the investment would not go ahead without public support.

Regulators also found the measure to be proportionate and limited to what is necessary to achieve environmental benefits. The Commission said the impact on competition and trade within the EU would remain limited.

As part of the agreement, HyforSeeds has committed to share potential profits with the French government if project returns exceed current expectations.

Hydrogen key to EU climate goals

The decision aligns with broader EU policy goals aimed at achieving climate neutrality by 2050. Hydrogen will play a critical role in decarbonising hard-to-abate sectors such as heavy industry, transport and chemicals production.

Under the Renewable Energy Directive, renewable fuels of non-biological origin — including renewable hydrogen — must account for at least 42% of hydrogen used in industry by 2030, rising to 60% by 2035.

The European Commission’s hydrogen strategy also seeks to establish a comprehensive hydrogen economy across the continent, supporting large-scale electrolysis projects and industrial adoption of low-carbon hydrogen technologies.