Denmark's 1GW green hydrogen project has received environmental approval

A 1GW green hydrogen project in the Danish port city of Esbjorg has received environmental approval, bringing it closer to a final investment decision (FID).

The plant's developer, H2 Energy, plans to install 50 proton exchange membrane (PEM) electrolyzers, supplied by Us-Based manufacturer Plug Power, and begin operations in the second half of 2025.

Assuming 5,000 hours of production per year, H2 Energy expects the plant to be able to produce about 90,000 tons of hydrogen per year.

While H2 Energy points to the Esbjerg site's proximity to offshore wind farms as a point in its favour, it has not specified exactly how it will power its green hydrogen plant, which will build a 400 kilovolt grounding cable to connect the project to Endrup's substation.

However, according to the environmental impact report, the hydrogen produced in Esbjo will not be used within the city.

Instead, it will be piped to the village of Egtved and then to a distribution centre in the city of Taulov in Fredericia, some 80 km from the production site. There, H2 Energy's hydrogen will be fed into pipelines to meet industrial demand or compressed for use as transportation fuel.

H2 Energy, majority-owned by commodity trader Trafigura, announced in 2022 a partnership with oil company Phillips 66 to develop a network of up to 250 hydrogen filling stations in Denmark, Austria and Germany, although the two companies have since kept quiet.

While the Esbjo facility will be built without subsidies, H2 Energy acknowledged at the time that Phillips 66's hydrogen fueling network would depend on government support.

H2 Energy estimates that its Esbjorg Green hydrogen facility will consume 1 million cubic meters of water per year, which will come from utility DIN Forsyning's wastewater treatment plant in Esbjorg.

"This will significantly reduce the pressure on drinking water and groundwater resources, further advancing our sustainability mission," said Mark Pedersen, operations manager, H2 Energy Europe.

The facility will also supply waste heat to the district heating network in Esbjo.

Jesper Frost Rasmussen, Mayor of Esbjo, said: "H2 Energy Europe's environmental approval for the upcoming hydrogen plant is of great significance for Esbjo, positioning it as a leading green business city in Europe."

However, he noted that "clarity is still needed" when it comes to the exact location of the proposed hydrogen pipeline to Germany, which is expected to begin operations in 2028.