The establishment of the hydrogen venture in Denmark has suffered several setbacks. But now the government wants to ease the conditions for a hydrogen pipeline to Germany and provide billions in funding so that construction can be accelerated by a year. The focus will initially be on the part of the hydrogen pipeline that runs from Esbjerg to the German border. This will postpone the original plan to build a 360-kilometer-long pipeline. This was announced by Climate Minister Lars Aagaard (M) at a press conference on Friday.
- The prerequisite is that we can connect Danish production to German demand, which requires a hydrogen pipeline, and we, as a government, are ready to help with that, he says.
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.
Now the government wants to deal with the challenges of the pipeline, and it expects an export to Germany in 2030, even though it was postponed to 2031 last year.
This may be because the project will initially be smaller than previously, and that the government will provide a billion as a guarantee for the establishment of the pipeline. It is a major change of course and a disappointment for the government that state aid will have to be used.
Loans and support for infrastructure
Energinet will receive a framework of 7.1 billion. DKK, which must be repaid. The state will provide subsidies of up to eight billion. DKK in operating subsidies, which will fall over 30 years. The money comes from the economic leeway.
- The framework is set in such a way that the players must sign up and buy a certain capacity, says Lars Aagaard.
He explains that ideally there should be uniform conditions for state aid in Europe. In addition, the government will lower the requirement for how much hydrogen companies must commit to supplying the pipe. This has been a decisive obstacle to companies' access to the pipe and thus the start of their hydrogen production.
The focus is on the part of the pipe that goes from Esbjerg to the German border, and thus the original plan to build a 360-kilometer-long pipe all the way to the Limfjord is postponed. This is because the most promising Danish hydrogen projects are located in Esbjerg.
- I understand the disappointment, but if we don't build from Esbjerg to the border, then there is no foundation, says Lars Aagaard.
Smaller solution
The hydrogen must be produced with renewable energy in order to create green fuels that can replace fossil fuels in airplanes and ships.
The original project was priced at approximately DKK 15 billion, but by shortening the pipe a cheaper price is expected. A further expansion may come into play later. The government has a majority in advance, but will hear the conciliation group for the project.
The hydrogen producers must 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 achieving previous goals. The problems do not affect the climate goals in 2030.
/ritzau/
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