The budget for the Denmark-Germany hydrogen pipeline has been increased by DKK 5.6bn ($850m) as state-owned transmission system operator (TSO) Energinet lowers commitment thresholds and extends the capacity booking window for projects.
The Danish government aims to shoulder early-stage financial risks through the new alterations and investment, which brings the total support for the 133km cross-border pipeline to DKK 16.5bn ($2.5bn).
Initial capacity bookings will become non-binding, the minimum commitment requirement will shrink from 500MW to 100MW, and the capacity booking window will extend to November 2027.
State-owned Energinet claims the moves address difficulties producers faced in booking capacity while maturing projects.
According to the TSO, producers have struggled to take on the financial commitment before the hydrogen infrastructure had reached financial close.
It described the pipeline as in “early-stage,” but maintained the “political ambition” of commissioning it by 2030, behind its original start date of 2028.
The cross-border project, a recognised Important Project of Common European Interest, will supply German consumers with green hydrogen produced in Denmark.
In May, three Danish green hydrogen projects were awarded €1.3bn ($1.47bn) in German subsidies to line up supplies for German end-users.
Earlier in the year, Energinet selected UK-based engineering firm Worley to deliver engineering, procurement, and construction on the pipeline’s first phase, which was delayed in 2024.
Tune into the conversations shaping gases and energy. The 1895 Podcast from gasworld Global Insights (GWGI) brings you weekly analysis, insights, and interviews in a laid-back, conversational style.
Each episode explores:
• The biggest industry news and talking points
• Regional, technological, and application trends
• The role of gases in today’s energy transition
Listen and subscribe on Apple, Spotify, Amazon Music – or wherever you get your podcasts.
