France has moved to implement green hydrogen quotas in transport, after proposing a new framework included in the country’s 2027 finance bill, as well as double-sided auctions for e-fuels and further subsidies for hydrogen production.
Designed to implement the EU’s Renewable Energy Directive (RED) III transport mandates, the proposed IRICC will replace the existing TIRUERT framework and impose new carbon intensity reduction obligations.
For hydrogen producers, the mechanism could open demand from refineries and transport applications, helping to provide offtake signals that have remained a barrier to project development across Europe.
While the bill doesn’t specify IRICC requirements, previous consultation documents showed hydrogen quotas of 0.2% from 2027 and 1.5% from 2030.
Trade group France Hydrogène claimed the measure was expected to “trigger” almost €2bn ($2.25bn) in private hydrogen project investment across refining, marine synthetic fuels, and road mobility, dependent on final quota design.
The bill also included plans to introduce a dual-auction mechanism to support green hydrogen-based sustainable aviation fuel (e-SAF) projects.
It would see the government “guarantee” up to 160,000 tonnes of e-SAF production per year to achieve the country’s 2032 ReFuelEU synthetic fuel obligation of 2%.
The document also confirmed a €1.2bn ($1.35bn) budget for its competitive electrolytic hydrogen project tender, which awarded €778m ($874m) to three projects in its first round.
The scheme provides per-kilogramme subsidies for 15 years, under its wider €4bn ($4.5bn) production incentive programme.
“The French hydrogen sector is at a pivotal moment, needing to make crucial final investment decisions in 2027,” said Nicolas Brahy, President of France Hydrogène. “If these measures are adopted, France’s potential will finally translate into industrial investments.”
The bill will now go through the National Assembly and Senate, with the first formal vote expected on 20 October.
Passage is far from automatic. France’s previous two budgets were ultimately forced through using a constitutional provision after governments struggled to secure parliamentary majorities. The 2026 budget was only finally adopted in February following no-confidence votes.
With France also heading towards a presidential election in 2027, the hydrogen provisions therefore remain subject to political negotiation.
