Insight
Denmark's Hydrogen Backbone: Driving Green Energy Transition and Cross-Border Collaboration
The project is a cornerstone of Europe’s green energy strategy and now targets completion by 2031. While the initial plan aimed for 2028, the timeline has been adjusted to account for technical complexities and regulatory developments. The commitment to still complete the project underscores Denmark's ambition to lead in renewable energy, particularly green hydrogen, to meet the growing demand from Germany and beyond.
The updated timeline for Denmark's hydrogen pipeline project reflects increased technical, market, and operational complexities, which delayed the project's start. A revised user commitment process has also been introduced, shifting from a single booking step to a two-step process. Initially, binding commitments from users were expected by 2025, but due to unresolved issues among developers, Energinet has rescheduled the capacity sale. The first phase will take place in 2024, focusing on offshore wind developments, while the second phase in late 2025 will align with wind concession awards and regulatory approvals.
Market potential and Updated Planning
In a spring 2024 market dialogue, Energinet confirmed a strong demand for hydrogen transport in Denmark, with potential needs reaching up to 6.9 GW by 2050. Based on these findings and the political agreement from April, the capacity booking requirements have been updated and mapped out geographically. The adjustments ensure the infrastructure aligns with the long-term needs of both the market and government ambitions. With this strong renewable energy base, Denmark is well-positioned to become a key supplier of green hydrogen to Europe. Energinet and Gasunie estimate that Denmark could potentially meet around 25% of Germany’s future demand for green hydrogen.timeline Adjustments
The original timeline, which aimed for operational status by 2028, has been extended. The new plan incorporates legal provisions ensuring an approved environmental impact assessment within a 40 month timeframe from application to approval, extending beyond the previously expected 18 months.
Government Support and Financial Commitment
The Danish government remains fully committed to the project’s completion, recognising its importance for Denmark's leadership in hydrogen production. The government has also expressed its willingness to co-finance the project, subject to Energinet meeting key conditions through the capacity sale process.
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