Everfuel has signed a grant agreement for EU subsidies of almost €1/kg ($1.12) of green hydrogen from the 200MW first phase of its Frigg project in Vejen, Denmark.
The agreement with the German government gives the producer €0.98/kg ($1.10) of hydrogen over 10 years from the project’s launch, equivalent to €245m ($275m)
Awarded in May by Germany’s European Hydrogen Bank Auction-as-a-Service scheme, the project will supply green hydrogen to German end-users via the planned Danish Hydrogen Bankbone.
Everfuel said it had also reserved 400MW of capacity for hydrogen Danish and German pipelines.
Project Frigg and the pipelines connecting the countries are planned to come online by 2031.
While it did not specify a timeline, Everfuel said Frigg is designed to scale to 2GW of electrolyser capacity “as the market develops,” representing a huge leap from its operational 20MW HySynergy plant.
Although the 133km Danish-German hydrogen pipeline was scheduled to come online by 2028, it has seen delays, with the transmission system operator citing increased complexity and longer-than-expected planning and environmental processes.
The German subsidy round also selected European Energy’s 150MW Kassø project, and Copenhagen Infrastructure Partners’ 240MW Høst development, as the country looks to ramp-up supplies of green hydrogen.
