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Energy transition: lessons to be learned from the first decision of the French Competition Authority on the hydrogen market

In this article, published in “Le Moniteur”, Nelsie Bergès, a counsel, and Lucile Delahaye and Antoine Le Dylio, associates, explain the legal and economic framework that is emerging in connection with the initiatives of many local authorities to install hydrogen distribution stations in their municipalities.

Hydrogen production and distribution infrastructure projects, which are supported by the government’s ambitious goal to invest €7 billion by 2030 to develop this sector, have increasingly attracted the interest of French local authorities, particularly in the field of mobility.  In this regard, the government’s calls for projects give preferential treatment to decarbonated hydrogen, by setting specific objectives and providing higher financial aid.

In a context of climate emergency and, more locally, the need to improve air quality, decarbonated hydrogen offers new prospects, and raises new challenges, for local authorities with respect to light and heavy means of mobility (passenger transportation, waste collection).  Local authorities currently mobilise all means at their disposal, from public procurement to urban planning, and also involve private companies in the development of local infrastructure. This involvement is materialised in contracts entered into with the private operator(s), which may take several forms.

Within such context, the French Competition Authority analyses the contours of this booming market, noting that it is likely to change significantly in coming years, and addresses the issues it raises in terms of competition law.

In light of changes to the regulations and case law, as well as recent current events, this article analyses the emergence of hydrogen mobility, the tools it mobilises, and the legal and practical issues it raises.

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