Germany’s Federal Ministry for Economic Affairs and Energy (BMWE) has signed funding agreements with three hydrogen projects selected under the German-Danish Auction-as-a-Service (AaaS) scheme of the European Hydrogen Bank (EHB), committing approximately €1.17 billion to support renewable hydrogen production in Denmark and strengthen future supplies to German industry through cross-border pipeline infrastructure.
The scheme aims to connect Danish renewable hydrogen producers with buyers linked to Germany’s hydrogen core network, taking advantage of Denmark’s high share of renewable electricity to produce hydrogen through electrolysis at competitive costs. According to State Secretary Frank Wetzel, the cooperation is intended to establish a secure, long-term and cost-efficient supply for German industry, while giving Denmark access to a major export market.
The three selected projects are Frigg 1, developed by Everfuel Frigg 1 ApS in Vejen, which secured a bid price of €0.98/kg and approximately €245 million in funding; HØST PtX, developed by CI ETF I Hoest P/S in Esbjerg, with a bid price of €1.70/kg and around €550 million in funding; and Gemini, developed by Kassø Hydrogen I ApS in Kassø, with a bid price of €1.77/kg and approximately €378 million in funding. The projects were selected through a competitive process based on the lowest funding requirement per kilogram of hydrogen.
The agreements also support the development of the Danish Hydrogen Backbone 1 (DHB1) pipeline. Denmark has repeatedly lowered the minimum requirements for its construction, and a financially guaranteed capacity booking of just 100 MW by 1 January 2028 is now sufficient to meet the booking requirement for the pipeline’s implementation. According to the BMWE, this change improves planning certainty for both Danish producers and German buyers, as a single larger project could be enough to trigger construction.
Funding payments will be made over ten years, from 2031 to 2041, and will depend on the actual volumes of hydrogen delivered and certified. The mechanism is therefore tied to the successful implementation and production of the selected projects. The BMWE says the scheme is expected to make more competitive hydrogen prices available to future buyers connected to Germany’s core network earlier than would otherwise be possible, while contributing to the diversification and decarbonisation of the country’s energy imports.
