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8 min ago 2 min read
Renewable developer European Energy has been named as the first winner of Germany’s €1.3bn ($1.5bn) green hydrogen tender, securing a €228m ($265.6m) contract to produce hydrogen in Denmark.
The per-kilogramme subsidies will fund the company’s plans to expand its existing 52MW facility in Kassø, Denmark, by 150MW.
It comes under Germany’s European Hydrogen Bank-linked , aimed directly at Danish projects for export into Germany through the planned Danish Hydrogen Backbone, which is due online by the end of 2030.
Like the European Hydrogen Bank, the subsidies will be paid on a per-kilogramme basis for 10 years once the project begins operations.
Other winners from the auction have not yet been announced.
Rene Alcaraz Frederiksen, EVP and Head of PTX at European Energy, said, “The support enables further expansion of hydrogen production connected to Kassø and contributes to strengthening Europe’s renewable fuels infrastructure.”
The firm’s Kassø project, which came , produces green hydrogen from electrolysis as a feedstock for e-methanol production.
Denmark has been positioned as a strong potential green hydrogen producer due to its high offshore wind capacity, with various projects looking to export to Germany.
However, the Danish Hydrogen Backbone from its original start date of 2028 with transmission system operator Energinet citing increased complexity and longer planning and environmental processes.
European Energy said it now “expects” the 133km pipeline to “move forward,” due to both Danish producers and German offtakers showing “commitment.”
“We now call on the incoming Danish Government to commit to constructing the hydrogen infrastructure that will transport our products to off-takers in Germany,” Frederiksen said.
It comes as Germany looks to ramp up supplies of green hydrogen after passing in the transport sector.
By 2040, green hydrogen must make up 10% of transport energy, with fuel suppliers facing penalties for non-compliance.
