Three projects, all from Denmark, won the auction held by Germany – using the ‘auction as a service’ mechanism provided by the European Hydrogen Bank (EHB) – to award a total budget of EUR 1.3 billion to support the production of green hydrogen and synthetic fuel derivatives.
As reported by several international publications – including Gasworld (which effectively ‘absorbed’ H2 View; Editor’s note:) – the project that has obtained the largest share of resources, amounting to EUR 777 million (or EUR 1.7 per kg of H2 produced) is Copenhagen Infrastructure Partners’ (CIP) HØST Esbjerg, located in the Danish coastal city of the same name, which envisages the installation of 240 MW of electrolysis (the one financed + Phase 1 of the initiative, which should then continue in successive steps until reaching 1 GW in total).
European Energy follows that – as already reported by HydroNews – obtained EUR 228 million (EUR 1.07/kg) from the German government to expand the electrolysis capacity of its Kassø plant, which came on stream in 2025 producing H2 that is then processed into e-methanol for the shipping industry, from the current 52 MW to over 200 MW.
The third Danish company to win the German auction was Everfuel, which was awarded EUR 244.9 million (EUR 0.98/kg) for the 200 MW first phase of the Frigg project, located in Vejen, which could be expanded to a capacity of 2 GW in the future.
The strategy behind this operation is that the hydrogen produced in Denmark through funding obtained from Berlin will then be transported to Germany via the Danish Hydrogen Backbone, a new infrastructure that is supposed to connect the two countries and which, in the original plans, was supposed to be completed in 2028, except for delays admitted by the network operator Energinet due to technical complexities and red tape.
The three projects financed through this auction, which will be sustained for 10 years, will produce 78,000 tonnes of renewable hydrogen per year, destined for Germany, starting in 2031.
