Minister approves first Danish hydrogen pipeline to Germany – next step is capacity sales in 2026

Denmark is one step closer to exporting green hydrogen to Germany. Minister for Climate, Energy and Utilities Lars Aagaard has now approved that Energinet can move to the construction phase of the planned hydrogen pipeline from Esbjerg to the German border – a project with a total length of approximately 133 km and a budget of DKK 6.9 billion in 2025 prices.

The hydrogen pipeline, which has been named "Seven" because of its route from Esbjerg via Egtved to Frøslev, is a central element of the political agreement on hydrogen infrastructure that was concluded in February. The project will support the development of a Danish hydrogen market and open up the export of green hydrogen to Germany, where industry currently uses hydrogen produced from natural gas.

We are in the process of going from black to green throughout Europe, and Denmark must play a role in this transition. The hydrogen pipeline is the push that will kick-start the Danish hydrogen adventure if the industry also steps up and books the necessary capacity in the pipeline. We have particularly good opportunities for energy from offshore wind turbines in the North Sea and from solar and wind on land, which can be turned into green hydrogen that can be exported. Now it is up to the industry to deliver, so that we can send green hydrogen across the border, for a better climate and for a stronger Europe, says Lars Aagaard in a statement.

The construction work consists of 45 km of new pipelines and 88 km of converted gas pipelines, which must be adapted for hydrogen transport. Energinet must also enter into an agreement with German Gasunie to have a pipeline ready for connection on the other side of the border by 2030 at the latest.

Government loans and support

The financing is provided via a government loan framework of DKK 6.9 billion. DKK, which Energinet must repay up to 2060 through tariffs from the users of the infrastructure. In addition, the state is providing an operating subsidy of up to DKK 10.6 billion over 30 years to reduce transport costs and thus lower the entry barrier for the players.

The next crucial step in the project will be the so-called capacity sale, which Energinet will open in 2026. Here, potential users of the hydrogen pipeline – as producers of green hydrogen – must enter into binding agreements to book capacity. In order for the project to be realized, it requires that a total of transport capacity corresponding to at least 0.5 GW (lower calorific value) out of the pipeline's total capacity of three GW is booked. Without meeting this requirement, the pipeline will not be established in principle.

- This is an important and decisive milestone. The political agreement on a Danish hydrogen system has set 2030 as the target for when the hydrogen pipeline should be ready, and therefore we have a very tight schedule. It is important that all approvals and regulatory procedures are received on an ongoing basis and do not drag on, says Michael Linnemann Pedersen, who is the area manager for, among other things, Hydrogen Development at Energinet.

Several other conditions still need to be in place before construction can begin. This includes the Danish Energy Supply Authority's approval of the pricing of the existing gas pipeline, which is to be converted to hydrogen. In addition, Energinet and German Gasunie must enter into a binding agreement to establish an interconnection at the border - an agreement expected to be concluded in 2028. Finally, the project must also go through a number of approvals within the environment, planning, technical requirements and safety.

The excavation work is expected to start in 2028 and be completed in 2030.