ESBJERG: A majority in the Danish Parliament has reached a quick agreement to run a hydrogen pipeline from Esbjerg to the German border in 2030, after the hydrogen venture has suffered several setbacks. This is according to a press release.
- We need to get the hydrogen snowball rolling, and that requires more help. As it is now, the market cannot handle it on its own, and we will now remove that barrier, says Minister of Climate, Energy and Utilities Lars Aagaard (M).
Compared to the original visions, the pipeline has been shortened, the requirements have been relaxed, and state support worth billions of kroner is being used.
The focus will initially be on the part of the hydrogen pipeline that runs from Esbjerg to the German border. This postpones the original plan to build a 360-kilometer pipeline.
This is because the most promising Danish hydrogen projects - according to the government - are located in Esbjerg. Lars Aagaard explains this by saying that it is important to build the foundation of a house before erecting the roof.
A hydrogen pipeline from Danish factories to German customers is a crucial prerequisite for Denmark to be able to build up production and export of green fuels.
However, the development has been problematic, and in 2024 the government had to postpone the hydrogen pipeline, resulting in several related delays.
The construction was postponed last year to 2031, but exports to Germany are now expected in 2030, where the German steel industry is ready to decline.
This may be because the project will initially be smaller than before, and that the government will provide a billion-dollar guarantee for the establishment of the pipeline. It is a major change of course and a disappointment for the government that state aid will be used.
The minister acknowledges that the timetable is tight, and he does not provide any guarantees.
Energinet will receive a framework of 7.4 billion kroner, which must be repaid. The state will provide a subsidy of 8.3 billion kroner in operating subsidies, which will fall over 30 years. The money will come from the financial leeway.
In addition, the government will lower the requirement for how much hydrogen companies must commit to supplying the pipe with.
The hydrogen must be produced with renewable energy in order to create green fuels that can replace fossil fuels in aircraft and ships.
The original project was priced at approximately 15 billion kroner, but by shortening the pipe, a cheaper price is expected. A further expansion may come into play before 2030, but will only be built after, the minister explains.
The hydrogen producers will have to pay to use the pipe, and the hope is that it can be a good business for the Danish state, but both Denmark and the EU are far from reaching previous targets.
There will be enough electricity to start with, according to the minister, who does not expect the price of electricity to increase.
The problems do not affect the climate goals in 2030.
/ritzau/
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