Alstom Halts French Hydrogen Projects, Seeks Government Support

Alstom has announced the suspension of its French Important Projects of Common European Interest (IPCEI) hydrogen projects following the cessation of government funding. The global rail manufacturer is currently in active discussions with the French government to explore avenues for supporting its operations and the broader hydrogen sector within France.

Alstom Confirms Funding Halt for French Hydrogen Initiatives

Alstom has officially confirmed that it has been notified of the discontinuation of French government funding for its Important Projects of Common European Interest (IPCEI) hydrogen projects situated in France. In direct response to this development, the company has initiated an internal communication regarding the suspension of its IPCEI-related activities within the country. This move signals a significant shift for Alstom’s hydrogen development roadmap in France, prompting urgent dialogue with national authorities.

The rail giant is currently engaged in intensive discussions with the French government. The primary objective of these negotiations is to collaboratively identify and implement viable solutions that can provide essential support for both Alstom’s ongoing operational activities and the nascent hydrogen sector in France. Recent progress within the French IPCEI programme included the successful delivery of a prototype railway fuel cell by Alstom, highlighting the tangible advancements being made prior to this funding announcement.

Despite the suspension of French IPCEI funding, Alstom has reiterated its unwavering commitment to its existing hydrogen train customers across three European nations. The company pledges to honour all contractual obligations concerning delivery, maintenance, and operational support for these clients. Furthermore, Alstom confirmed that projects currently underway within France will continue to progress as stipulated by their existing contracts. The company will also maintain its reliance on solutions provided by its external supplier, Cummins, for these ongoing operations.

Italian Projects Remain Unaffected

Alstom has clarified that the funding suspension is strictly limited to French IPCEI hydrogen projects and will not impact any activities or funding streams in Italy. For projects in Italy, Alstom affirmed its commitment to train delivery and operational support. The Coradia Stream Hydrogen train, a key component of Alstom’s hydrogen portfolio, is currently undergoing crucial track testing in both Italy and Germany, with the objective of securing the necessary authorisations for its service entry in 2026.

Strategic Impact and Industry Context

Alstom’s hydrogen development plan, part of the IPCEI “Hy2Tech” initiative that commenced in September 2021 and is slated to continue until 2027, encompasses the development of advanced hydrogen traction technologies, a dedicated hydrogen locomotive, and a high-power fuel cell generator for freight applications. This comprehensive plan involves eight of Alstom’s sites, including its facility in Belfort. The overarching goal is to pioneer hydrogen fuel cells, batteries, converters, and storage systems as sustainable, low-emission alternatives to traditional diesel-powered rolling stock across the European rail network. The cessation of French IPCEI funding, while a setback for specific national projects, underscores the critical need for consistent and substantial public-private collaboration in accelerating the deployment of innovative green technologies within the rail sector. For industry leaders, this development highlights the ongoing volatility in the green transition funding landscape and the importance of diversified support mechanisms and robust contractual frameworks to ensure project continuity.