Germany has finalised €1.2bn ($1.35bn) worth of subsidy agreements for three Danish green hydrogen projects backed by its national Auction as a Service (AaaS) scheme under the European Hydrogen Bank (EHB).
The projects in Denmark by Everfuel, European Energy, and Copenhagen Infrastructure Partners (CIP) will have a combined capacity of 590MW and are set to supply German end-users via the planned Danish Hydrogen Backbone.
The settled agreements follow initial awards in May and will see the firms receive subsidies per kilogramme of green hydrogen supplied across ten years from project launch.
They allow Germany to capitalise on favourable green hydrogen production conditions in Denmark, enabling cross-border supply “as cost-effectively as possible,” according to the Federal Ministry for Economic Affairs and Energy (BMWE).
Everfuel’s Frigg project in Vejen landed a total of €245m ($275m), equating to €0.98/kg ($1.10) through its planned 200MW first phase.
CIP’s 240MW Høst development in Esbjerg will receive €550m ($618m) at a rate of €1.70/kg ($1.91), and European Energy’s 150MW Gemini plant in Kassø secured €378m ($425m) at €1.77/kg ($1.99).
The AaaS also gave each project a guaranteed minimum capacity booking of 100MW for the planned cross-border hydrogen pipeline. BMWE said this “increases planning certainty” for both producers and consumers.
Everfuel previously said it has booked 400MW of capacity.
Although the 133km pipeline was scheduled to come online by 2028, it has been delayed until 2031, with the transmission system operator citing increased complexity and longer-than-anticipated planning and environmental processes.
