European Energy has been awarded support under the German government’s hydrogen auction framework linked to the European Hydrogen Bank (EHB), as one of three selected projects. European Energy has been awarded support under the German government’s hydrogen auction framework linked to the European Hydrogen Bank (EHB), as one of three selected projects.

Funding of up to EUR 228m will support European Energy’s plans to establish an additional 150MW of hydrogen production capacity in Denmark.

The award forms part of Germany’s broader hydrogen strategy, which aims to accelerate the development and import of renewable hydrogen and hydrogen derivatives to support the decarbonization of industry and transport across Europe.

“We are very pleased with this support awarded by the German Government. The support enables further expansion of hydrogen production connected to Kassø and contributes to strengthening Europe’s renewable fuels infrastructure,” said Rene Alcaraz Frederiksen, EVP and Head of PTX at European Energy

The European Hydrogen Bank mechanism was established by the European Commission to help close the cost gap between renewable hydrogen production and market demand through competitive auctions and targeted support schemes. The company now expects the planned hydrogen pipeline between Denmark and Germany to move forward as both producers on the Danish side and off-takers on the German side are demonstrating commitment to the market.

“We among others are dedicated to moving forward the green hydrogen industry in Denmark, and we now call on the incoming Danish Government to commit to constructing the hydrogen infrastructure that will transport our products to off-takers in Germany,” said Rene Alcaraz Frederiksen.

European Energy sees growing demand for renewable hydrogen and hydrogen-based products such as e-methanol, particularly in sectors where direct electrification is difficult, including shipping and industrial processes. Driving interest from Germany is the latest review of a law requiring 0.1% of all road fuel placed on the German market to be certified as RFNBO from 2026, with the target rising sharply to 1.5% by 2030, then reaching 10% by 2040.

“By financing hydrogen production in Denmark but also by implementing ambitious targets for uptake of green fuels, Germany is leading the way in Europe. We call on the Danish government to step up and follow the German example to make sure that green hydrogen can finally play a crucial role in the green transition,” said Rene Alcaraz Frederiksen.

European Energy operates two Power-to-X facilities in Denmark. One green hydrogen production facility in Esbjerg as well as together with Mitsui & Co. Ltd. owning the Kassø facility producing e-methanol. European Energy has a broad Power-to-X portfolio, which includes projects under development across Europe, North America, Brazil and Australia.