European Energy was selected among the three winning projects of the German auction-as-a-service procedure made available to EU member states by the European Hydrogen Bank (EHB), which had a total budget of EUR 1.2 billion.
The Danish company has obtained a total financing of up to 228 million euros, which will support the construction of 150 MW of green hydrogen production capacity in Denmark.
“We are very pleased with this support from the German government. The funding will enable further expansion of the hydrogen production linked to Kassø (the plant was inaugurated in 2025; Editor’s note:) and will contribute to strengthening the European renewable fuels infrastructure,” said Rene Alcaraz Frederiksen.
According to European Energy, both the producers on the Danish side and the buyers on the German side are showing a concrete commitment to the market, as confirmed by the allocation of resources by the German government: a positive signal that may help to advance the hydrogen pipeline project between Denmark and Germany.
“We, together with other operators, are committed to advancing the green hydrogen industry in Denmark, and we are now asking the new Danish government to commit to building the hydrogen infrastructure that will transport our products to offtakers in Germany,” Frederiksen emphasised.
European Energy notes a growing demand for renewable hydrogen and hydrogen-derived products, such as e-methanol, particularly in sectors where direct electrification is more complex, including shipping and some industrial processes. Also driving Germany’s interest is the recent revision of regulations, transposing the European RED III directive, requires that 0.1% of all road fuels placed on the German market be certified as RFNBO as of 2026, rising to 1.5% by 2030 and reaching 10% by 2040.
“By subsidising hydrogen production in Denmark while introducing ambitious targets for the use of green fuels, Germany is leading the European way. We call on the Danish government to take a step forward and follow the German example to ensure that green hydrogen can finally play a crucial role in the energy transition,” Frederiksen added.
European Energy operates two Power-to-X plants in Denmark: a green hydrogen plant in Esbjerg and, together with Mitsui & Co., the plant in Kassø dedicated to the production of e-methanol. The company also has a large portfolio of Power-to-X projects under development in Europe, North America, Brazil and Australia.
