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 March 28.
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.