Denmark ‘willing’ to inject billion-scale sum into Danish-German hydrogen pipeline

The government of Denmark has introduced new initiatives to support the country’s emerging hydrogen market with billion-scale (DKK) funding and committed to establishing a Danish-German hydrogen pipeline by 2030.

The government announced the new initiatives for hydrogen as well as offshore wind markets on January 31, 2025, citing global challenges and the country’s need to “run entirely on green electricity”.

“Like offshore wind, green hydrogen is one of the elements that can contribute greatly to energy security and green transition in Europe. The potential is especially present in Germany where the industry is facing an extensive transformation away from fossil fuels.

“Furthermore, Danish hydrogen export can contribute to establishing more certainty around the offtake of Danish offshore wind as well as support an increase in green jobs and development in the areas of Denmark, where renewable energy production is highest,” the government stated.

In particular, the government expressed willingness to provide funding at a DKK billion scale to support the establishment of hydrogen infrastructure from Esbjerg to the German border, enabling export to Germany by 2023, adding that the booking capacity will be reduced to 0.5 GW.

“Denmark has an opportunity and an obligation to take part in kick-starting the emerging hydrogen market in Europe. Furthermore, it presents green business opportunities in Denmark. We are committed to realizing hydrogen export to Germany in 2030. Therefore, we now increase government funding and present the initiatives to enable establishment of the first stretch of the pipeline. This is the beginning, not the end,” the Danish Minister for Climate, Energy and Utilities said.

As informed, the specific terms for the buildout are to be discussed with the parties behind the political agreement in early February. However, the government suggested reducing the booking requirements to realize the pipeline’s first phase based on one project.

The Ministry of Climate, Energy and Utilities explained that the full-scale hydrogen backbone in Jutland also includes expansion further north and east towards Fredericia.

“However, meeting the 2030 ambition requires a dedicated focus on building the first stretch of the pipeline from Esbjerg to the German border – but the ambition of the full-scale backbone still stands,” the Ministry stated, noting it will initiate a process to develop a plan for the next phases.

HØST PtX Esbjerg, a green hydrogen project developed by Copenhagen Infrastructure Partners (CIP), welcomed the announcement that the planned hydrogen pipeline between Denmark and Germany will be ready in 2030, reiterating its commitment to continue developing the project so it can be able to deliver green hydrogen in 2030.

Located on the Danish Westcoast, HØST PtX Esbjerg, is a 1GW electrolysis plant with planned annual production of approximately 120,000 tonnes of green hydrogen. So far, the project has secured all key fundamentals in place to produce green hydrogen on a large scale, including land rights.

HØST also gained access to water and green electricity via the grid and has obtained the primary environmental approvals. Further, basic design and construction plants are in place.  

“With today’s announcement, the government has breathed new life into the ambitions to make Denmark a leading country in the production of green hydrogen. The agreement today is a significant step in the right direction, with both concrete and usable conditions that creates a robust starting point for the industry. This makes it possible to see a way forward for the Danish hydrogen industry and for the Danish-German hydrogen cooperation.

“With increased flexibility to build the wind parks and a signal about new risk sharing models, an integrated package has been created which promotes investor interest in offshore wind in Denmark,” Karsten Plauborg, Partner in CIP, commented.