Denmark will increase state support for a planned green hydrogen pipeline connecting the country to Germany by DKK 5.6 billion ($850 million), Danish officials announced, providing greater financial certainty for the major cross-border energy infrastructure project.
The additional funding brings total state allocations for the Danish Hydrogen Backbone 1 pipeline to DKK 16.5 billion for the 2030–2059 operating period, according to Denmark’s Ministry of Climate, Energy and Utilities.
The decision aligns with Denmark’s broader ambitions to establish a major green hydrogen export market in Europe.
Designed to link Danish hydrogen production facilities directly with German industrial off-takers, the pipeline will run from Esbjerg in southwestern Denmark to the German border.
Slated to enter operation by late 2030, the hydrogen network will be constructed by the national transmission system operator Energinet.
Under a broad agreement reached between the Danish government and a majority of parliament, construction will proceed, provided at least one hydrogen project officially commits to utilizing the line.
To trigger development, commercial players must collectively reserve 0.5 gigawatts of capacity by December 2026 and secure a financial commitment equivalent to 0.1 gigawatts.
The government also extended the deadline for companies to provide financial guarantees to Energinet until Jan. 1, 2028.
Additionally, the Danish state will issue a guarantee covering up to DKK 2.1 billion in potential stranded costs incurred by Energinet until private producers finalize their financial pledges to manage early development risks.
The pipeline project comes as momentum builds across the regional hydrogen supply chain.
So far, five Danish hydrogen projects have already secured nearly DKK 12 billion in funding commitments from Germany and the European Union, according to the ministry.
