The European Commission has given the green light for France to provide €144 million (£125m) of state aid for the production of hydrogen.
It will support HyforSeeds, a subsidiary of hydrogen production firm Hynamics, to install and operate a 50MW renewable and low carbon hydrogen production unit.
The project will contribute to the decarbonisation of the ammonia production process in the EU by replacing up to 15% of the hydrogen, currently produced from fossil fuels, with renewable and low carbon hydrogen.
It is expected to reduce greenhouse gas emissions by at least 70% compared to traditional fossil-based hydrogen production methods, which will cut more than 46,000 tonnes of CO2 per year.
It plant will be located on the site of fertiliser and industrial chemicals producer LAT Nitrogen in the Ottmarsheim-Chalampé industrial zone, in Haut Rhin, France.
The aid will take the form of a direct grant and will cover part of the investment costs related to the project, including the construction of the electrolyser and other necessary infrastructure.
Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition said: “This measure will support the development of an ambitious electrolyser project, which will help reduce greenhouse gas emissions and contribute to the EU’s climate objectives.
“The project will also promote the use of renewable and low carbon hydrogen in the production of ammonia and fertilisers, which is an important step towards a more sustainable and environmentally friendly industry.”
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