Top 10 most attractive departments for green reindustrialization

The momentum remains positive, with investment projects reaching 23,5 billion euros in 2024, which confirms the attractiveness of France in terms of green technologies.

The Arthur Loyd Barometer, in this 8th edition, establishes the map of the departments which have proven to be the most attractive this year in terms of investment in the energy transition, on the basis of announcements in several green sectors, and among them, renewable energies, the battery and electric vehicle sector or the recycling and waste sector.

National Overview: Announced Green Industry Investments Remain High Despite Economic Conditions

• 23,5 billion euros of investments announced in climate transition sectors in 2024
• 2024, despite a 10% decline compared to 2023 (a record year), remains the 2nd best year since 2019
• 392 investment projects recorded in 2024: a sharper decline than the associated volumes, and a number of announcements which falls below the 400 announcement mark, a first since 2020.
• Announcements of small-volume transactions are down. Only 214 new projects worth less than €10 million in 2024 (vs. 255 in 2024, 301 in 2021) have been recorded.
• Conversely, large-scale operations (over 100 million euros) are on the rise and will even reach a record in 2024 with 36 new operations announced.
• Three sectors are more specifically in the spotlight: renewable energies (44%), electric batteries (25%) and the recycling & waste sector (22%).

The cards are being reshuffled in this 2024 ranking of the 10 most active departments in terms of investment projects in green sectors. Some departments, usually at the top due to their industrial heritage (such as the North), are giving way to departments with a more rural identity that had never previously ranked in the top 10 positions. Among them are Haute-Vienne (€1 billion announced) and Hautes-Pyrénées (€813 million).

Cumulatively since 2019, the Normandy, Hauts-de-France and Grand Est regions together account for half of the amounts and assert their identity as “industries of tomorrow”.

Normandy stands out for its ability to attract the industries of tomorrow

In 2024, Seine-Maritime will lead the ranking of the most invested departments with €3,4 billion announced, representing almost all of Normandy's investments (€3,5 billion in total), notably thanks to two major projects. Among them, Livista Energy has announced the creation of a European lithium hub in Le Havre, and Air Products will install a low-carbon hydrogen import facility in Le Havre.

Hauts-de-France, a key region in green technologies

Ranking champions in 2023, Hauts-de-France is experiencing a definite slowdown, while remaining the leading region to benefit from the amounts announced in 2024, totaling nearly 4 billion euros.

Cumulatively since 2019, the North has taken first place in the ranking by a wide margin, driven by four major announcements (ProLogium, Envision, Verkor, and XTC) worth more than €4 billion each in the electric battery production sector. The announcement of the creation of the ACC electric battery production "gigafactory" between PSA and Total has allowed the Pas-de-Calais region to take third place in the top 3 since 10.

Previously the 45th department according to announcements of amounts invested in sectors linked to the climate transition, the Somme climbed to 3rd place on the podium in 2024, notably thanks to two large-scale projects led by FertigHy and Tiamat, respectively in the various sectors (low-carbon fertilizer plant for agriculture) and battery & electric vehicle.

With 655 million, Aisne will be ranked in the Top 2024 departments attracting the industrial sectors of tomorrow in 10, moving from 51st position to 10th place, driven by an investment announcement from Verso Energy (whose co-founder and CEO is the Key Witness of this 8th edition of the Arthur Loyd Barometer).

The Grand Est, a region undergoing rapid industrial change

With a total of around €3,7 billion announced for 2024, the Grand Est region stands out, notably thanks to the growth of the Bas-Rhin, which jumped from 30th to second place in the ranking, reaching €2,3 billion announced in the greening of the economy, almost all of which in the battery and electric vehicle sector. The Vosges region also saw notable growth, moving from 54th to 5th place with nearly €1,1 billion announced, notably driven by the opening of a synthetic fuel production site by Verso Energy.

Occitanie is greening its industry

In the south of France, Occitanie is not far behind and is recording a record in 2024 in terms of announced amounts, driven in particular by the agreement between Qair and the local Airbus for the development of a green kerosene plant in Lannemezan (65). The region is one of the French driving forces in the renewable energy sector.

The PACA region continues its transformation in favor of renewable energies

Although Bouches-du-Rhône has fallen one step down from the top three, the department remains in a good position in terms of investment intentions, with nearly €1,7 billion announced for 2024, almost exclusively in the renewable energy sector. Across the Provence-Alpes-Côte-d'Azur region, 2024 is also expected to be a solid year, thanks to several major announcements, particularly in the carbon-free energy sector (led by solar and low-carbon hydrogen).

Cevan Torossian, Director of Arthur Loyd's Studies & Research Department, responds to this analysis and offers insights into some key factors in the greening of industry in France: "The establishment of green transition sectors is no accident. We note that the vast majority of successful regions have a strong industrial heritage. These new locations also rely on a combination of several additional parameters. First, access to suitable industrial land, which is becoming a strategic issue in the face of the increasing scarcity of available land. Second, the ability to mobilize a skilled workforce: regions with a pool of engineering and industrial production skills are the most attractive. The third essential lever is access to energy. Even if not all industrial sectors consume the same level of energy, guaranteeing stakeholders the long-term availability of energy resources is a prerequisite for investors." Finally, the support of public authorities and local elected officials is crucial: support mechanisms for implementation, administrative simplification, and a coherent regulatory framework can accelerate the implementation of green technologies. These criteria can explain the reasons for the success of territories that manage to attract investments in favor of the decarbonization of the economy.

Illustrative image of the article via Depositphotos.com.