It is a snub to the French government. While France tends to support the idea of producing hydrogen locally, even though this vector is seen as crucial for the energy transition, Engie President Jean-Pierre Clamadieu criticized this approach on Saturday. Answering a question from La Tribune at the business meeting in Aix-en-Provence, he defended a different strategy, also shared by Germany: importing the famous low-carbon molecule from around the world, particularly southern countries. “We will quickly reach a limit for zero-carbon energy production in France, even with nuclear power. “I believe that we must decide to import hydrogen from countries where we have access to energy under very good economic conditions,” he argued.
So far, however, the French government has expressed a desire to develop regional “clusters” that bring together the production and consumption of hydrogen in the same area. In other words, “juxtaposing wind turbines, an electrolyser, and a factory that needs hydrogen,” Jean-Pierre Clamadieu outlined. A vision that excludes from the outset the need to build huge supra-regional transport networks for this hydrogen in order to transport it from non-European countries and transport it within Europe. Only here: “As soon as we want to scale, I’m convinced that we need a network,” contradicted the Engie boss on Saturday.
Enough to join the philosophy of Germany, which “immediately imagines a network, storage or even import of hydrogen” and is “very used to an industry based on the use of gas,” he said. “We need more electricity connections, not gas connections,” Emmanuel Macron said last September, before giving in to pressure from Madrid and Berlin to build a hydrogen transmission line between the Iberian Peninsula and Germany.
hydrogen diplomacy
So, according to Jean-Pierre Clamadieu, this hydrogen must come from regions where there is “a lot of sun and a lot of wind”, not too far away “if we want to pull pipes”, but also further away if it is assumed that the Hydrogen is imported in the form of ammonia. And to quote the “Maghreb”, the countries of the “Gulf”, “Chile” or even “Australia”.
An approach that also follows the Berlin approach here. In fact, the government coalition on the other side of the Rhine has been engaged in real hydrogen diplomacy for several months and has already provided two billion euros in public funds to establish partnerships with Morocco, Namibia, the Democratic Republic of the Congo or South Africa. The government makes no secret of this: the target for domestic production of “renewable” hydrogen is currently only 14 terawatt hours (TWh)… with an estimated consumption of around 100 TWh in 2030!
The lines could also be laid in France. In fact, for several months the French government has been wondering if, despite its large nuclear fleet and its desire to build new reactors, it is able to produce enough “green” hydrogen on the territory. “All eyes are increasingly turning to e-fuel from hydrogen to decarbonize the air and sea, while the demand promises to be enormous,” slipped a major energy company a few weeks ago. Enough to make some music from the gas companies about the need to outsource some of that production and build a huge transportation network.
The EU intends to subsidize the production of hydrogen… abroad
American competition
Furthermore, on Saturday, Jean-Pierre Clamadieu reiterated his desire to see Europe adopt an equally effective stimulus framework as that introduced by the United States with its now famous Inflation Reduction Act (IRA) investment plan. “In Europe we are still debating the definition of green hydrogen, while in the US simple incentives are making a whole host of projects viable, especially in Texas!” he claimed.
This poses a risk of the old continent “falling behind”, hampered by “extremely sophisticated regulations slowing the pace”. [les] projects,” continued the President of Engie.
In an exclusive interview with La Tribune on April 25, he had already expressed his fears in this area.
“As for hydrogen, I think certain projects are at risk of migrating across the Atlantic […] The introduction of a tax credit of $3 per kilo of green hydrogen produced creates the conditions that make a project immediately profitable. “In Europe, the subsidy system based on the famous Important Projects of Common European Interest (Pieec) is much more complex and uncertain,” he argued.
Gaz: “We will get through next winter without major difficulties” (Jean-Pierre Clamadieu, President of Engie)
There will be no gas shortage next year, Engie assures
Finally, Jean-Pierre Clamadieu spoke about the coming winter, in which Europe, after more than a year of the energy crisis, seems to be starting to get its head out of control. “A physical scarcity [de gaz, ndlr] next year, I can’t believe it,” he said.
This morning, TotalEnergies CEO Patrick Pouyanné expressed his concern at a round table organized with Luc Rémont (EDF) and Catherine MacGregor (Engie). In fact, he had pointed to the uncertainties surrounding supplies for next winter. Even the risk of a “super shock” for Europe if the Republicans come to power in the United States and decide to reduce their hydrocarbon exports, which have become crucial for the old continent.
The President of Engie was therefore less pessimistic. Nevertheless, he called on people to remain “cautious”. “An essential point is to be able to continue the momentum of energy savings. That means -10% of the gas consumption, with no climate effect,” he stressed. And with good reason: if Jean-Pierre Clamadieu does not fear a sudden supply disruption in the coming year, “it will be two or three more winters before the new liquefied natural gas (LNG) production capacities in the United States and Qatar are fully available and for good.” forgiven in Europe,” he recalled.
While waiting for that crucial date, there is a risk of “re-entering a phase of competition”. [pour accéder à ces volumes, ndlr] “Tensions between Europe and Asia are quite tense, especially in the event of an economic recovery in China,” Laurent Nery, director of market analysis at Engie Gems, warned on Tuesday. This would inevitably lead to an increased risk of volatility for Europe and thus another uncertain winter.
Energy: Prices won’t drop significantly before 2027, Engie warns