The European Commission has approved €144 million in French state aid to support HyforSeeds in producing renewable and low-carbon hydrogen for the fertiliser sector.
France notified the Commission of the measure to support HyforSeeds, a subsidiary of hydrogen producer Hynamics.
The project will install and operate a 50 MW hydrogen production unit at the site of fertiliser and industrial chemicals producer LAT Nitrogen in the Ottmarsheim-Chalampé industrial zone in Haut Rhin, France, the Commission announced on Friday.
The funding will be provided as a direct grant covering part of the investment costs, including building an electrolyser — equipment that uses electricity to split water into hydrogen and oxygen — and related infrastructure.
The Commission said the project is expected to replace up to 15% of the hydrogen currently produced from fossil fuels used in the ammonia production process.
It is expected to reduce greenhouse gas emissions by at least 70% compared with traditional fossil-based hydrogen production, avoiding more than 46,000 tonnes of CO₂ a year.
How the EU assessed the aid
The Commission said it approved the aid under EU state aid rules, including provisions that allow support for certain economic activities under specific conditions.
HyforSeeds has agreed to share with France potential project-related profits beyond current expectations.
The project supports EU policy targets for hydrogen use in industry, including a Renewable Energy Directive benchmark that renewable fuels of non-biological origin account for at least 42% of all hydrogen used in industry by 2030, rising to 60% in 2035.
