Following the presentation of the draft finance bill on 1 October 2026 in the Council of Ministers, France Hydrogène welcomed the implementation of three measures expected by the sector: the establishment of a double auction mechanism to support the development of synthetic aviation fuels (e-SAF) in France, the entry into force of the Incentive for the Reduction of Carbon Intensity of Fuels (IRICC), and a €1.2 billion allocation to fund the launch of the second tranche of the mechanism supporting the production (MSP) of low-carbon hydrogen.
These three mechanisms constitute the priority measures identified during the Steering Committee of the Hydrogen Strategy on 22 July 2026.
Making e-SAF a new French industrial sector
While France boasts the largest portfolio of e-SAF projects in Europe and the second largest in the world after China, the dual-auction mechanism is the final piece needed to transform these projects into an industrial reality and realise their national potential. Demand for e-SAF is ensured by the ReFuelEU Aviation regulation; the dual-auction mechanism reconciles the timeframes required by the industry, which needs commitments of 10 - 15 years to secure investments, with those of consumers, who can rarely commit for more than three years.
The industrial stakes here are significant. The 12 French projects that could be commissioned from 2030 - 2035 currently represent over 800 000 tpy of e-SAF production capacity, and over €14 billion in potential investments. Their realisation would allow for the mobilisation of 3.4 GW of electrolysis capacity, equivalent to 40% of the target set by the National Hydrogen Strategy for 2035, and the creation of more than 3600 permanent direct and indirect jobs for site operation.
These projects would also make it possible to transform nearly 27 billion kWh of decarbonised electricity into industrial added value on the national territory, while helping to cover French and European needs for e-SAF.
The scheme planned by the government will guarantee up to 160 000 tpy of e-SAF production, the volume needed to reach the 2% target set by ReFuelEU Aviation for 2032 in France. This corresponds to two major projects, representing nearly €3 billion in private investment.
The IRICC, another signal awaited by the industry
France Hydrogène also welcomes the inclusion of the IRICC in the draft budget law, which is expected to secure demand for renewable and low-carbon hydrogen in refining, marine synthetic fuels, and road mobility. The IRICC is expected to trigger nearly €2 billion in private investment for hydrogen projects in these sectors – a median figure, depending on the final size of the hydrogen quota.
€1.2 billion confirmed for the MSP
Following the announcement this summer of the first recipients of the support mechanism for the production of decarbonised hydrogen, the budget confirms the allocation of €1.2 billion to finance the second tranche, launched in September. This mechanism will require further FIDs in strategic industrial sectors such as steel, fertilizers, and chemicals.
With this finance bill, the direction outlined with the sector by ministers Maud Bregeon and Sébastien Martin during the ministerial hydrogen steering committee meeting on 22 July 2026 is translated into action.
Nicolas Brahy, President of France Hydrogène, said: “The French hydrogen sector is at a pivotal moment, needing to make crucial final investment decisions in 2027. The draft budget law presented by the government provides an appropriate response. If these three measures are adopted, France's potential will finally translate into industrial investments.”