To make the most of the supply of renewable electricity in southern Denmark and channel the hydrogen produced locally to a country with a much more developed industrial base, namely Germany.
This is the rationale behind Albatros, the project that the German company Hy2gen is developing in Kassø, in the municipality of Aabenraa, with the aim of building a 100 MW plant capable of producing around 14,400 tonnes per year of RFNBO-certified renewable hydrogen – an acronym that identifies renewable fuels of non-biological origin in accordance with European legislation.
As announced by Hy2gen itself, the project – which is due to come on stream in 2031 – has been awarded up to €139.8 million in funding as part of the European Hydrogen Bank’s third auction.
The funding mechanism provides for a premium to be paid for each kilogram of renewable hydrogen actually produced during the first 10 years of operation. In this case, Hy2gen has submitted a bid of 0.97 euros per kg, which the company describes as one of the most competitive in the current round.
The grant will help to bridge, at least in part, the cost gap that still exists between the H2 green compared to conventional alternatives, making production more economically sustainable and providing the project with greater revenue certainty during the initial operational phase.
As mentioned, the hydrogen produced at this plant will be supplied primarily to German industries via the Danish-German Hydrogen Backbone, which, once completed, is expected to link Danish production sites to the German market.
In the Kassø area, it is already up and running the e-methanol plant developed by European Energy and Mitsui, powered largely by the nearby 304 MW solar power station – the largest in Northern Europe – capable of producing up to 42,000 tonnes a year.
“Albatros is the right project to meet the growing demand for renewable hydrogen in Germany. Thanks to the support of the European Hydrogen Bank and Aabenraa’s role as a modern industrial hub, we will be able to supply H2 ”to German customers at the most competitive prices possible, helping them to comply with European regulations. We also want to build a long-term relationship with the local community and contribute to the development of Kassø as a hub for the green industry,” commented Hege Økland, managing director of Hy2gen Nordic.
