Denmark plans to implement risk mitigation measures, including a DKr 8bn ($1.1bn) subsidy package, to accelerate the launch of the 340km hydrogen pipeline to Germany, ensuring construction can commence by 2030.
Last October, Energinet pushed back its plans to construct the pipeline from 2028 to 2031, stating that despite “large potential” for the infrastructure, projects with “significantly different degrees of maturity” forced it to delay the development.
Read more:Denmark-Germany hydrogen pipeline faces three-year delay
However, the Danish Ministry of Climate, Energy and Utilities has said today (January 31) that it is proposing to “reduce the capacity booking requirement,” so therefore the “first phase of the pipeline can proceed based on capacity from a single project.”
Instead of waiting for multiple buyers to sign long-term agreements for the Esbjerg to Germany network, Energinet can move forward with the project if just one major hydrogen producer commits to using it, making it more likely for the first phase to be completed by 2030.
Up to DKr 8bn of subsidies will be provided over 30 years to build the first section of the pipeline, whilst the Danish Government has also announced a DKr 7.5bn (1.4bn) loan will be granted to Energinet to support the project construction.
© Energinet
Energinet has already announced on LinkedIn it “will immediately start preparing the project.”
The infrastructure will carry green hydrogen produced in Denmark’s clusters around Fredericia, Esbjerg and Holstebro into Germany and beyond, feeding into the European Hydrogen Backbone.
Further down the line, the pipeline could be expanded further North and East, and the Ministry of Climate, Energy and Utilities is already initiating work to evaluate the next phases.
Additionally, the government has begun preparatory work for a new tender of 2-3GW of offshore wind, which will be finalised by Spring 2026.
“Denmark and Europe need green electricity and energy, but we are in a difficult situation where we won’t get more offshore wind unless we act quickly,” explained Minister for Climate, Energy, and Utilities, Lars Aagaard.
“That is why the government is now taking steps to create the best possible conditions for increasing Denmark’s offshore wind capacity so we can meet our own electricity demand with green power and contribute to a greener and more secure Europe.”
Aagaard continued, adding that Denmark “must play a role in kick-starting Europe’s green hydrogen production.”
He said, “At the same time, this represents a major green business opportunity for Denmark. That is why we are increasing funding to make it possible to export hydrogen to Germany by 2030 through the first stage of the hydrogen pipeline project, helping to set the wheels in motion.
“This is just the starting point, not the final destination.”
Who could anchor Denmark’s hydrogen pipeline?
Although it is not confirmed, projects such as MorGen Energy’s 1GW green hydrogen production plant in Esbjerg could be the key hydrogen producer the Danish government needs to ensure the pipeline’s viability.
Read more:1GW Danish green hydrogen project granted environmental approval
Last January, the project received environmental approval and it is now awaiting a final investment decision (FID).
On the demand side, industrial and steel sector companies in Germany are expected to be the primary consumers of the transported hydrogen.
Read more: Analysis: Can Germany’s steel industry decarbonise without hydrogen?
H2 View understands that the pipeline network is expected to feed into Heidenau, a town located south of Hamburg and will connect Denmark to a majority of Germany’s industrial companies.
