European Energy has been awarded funding of up to €228m ($265.85m) under the German Government’s hydrogen auction framework linked to the European Hydrogen Bank (EHB).
The company’s project is one of three selected to receive support through the scheme. The financial backing will contribute to building 150MW of additional hydrogen production capacity in Denmark.
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European Energy executive vice-president and PTX head Alcaraz Frederiksen Rene Alcaraz Frederiksen said: “We are very pleased with this support awarded by the German Government. The support enables further expansion of hydrogen production connected to Kassø and contributes to strengthening Europe’s renewable fuels infrastructure.”
The auction forms part of Germany’s broader strategy to encourage the development and importation of renewable hydrogen and its derivatives, aiming to support the decarbonisation of industry and transport sectors in Europe.
The EHB, set up by the European Commission, is intended to narrow the cost gap between renewable hydrogen production and market demand using competitive auction mechanisms and targeted support.
According to European Energy, demand for renewable hydrogen and related products such as e-methanol is growing, particularly for applications where direct electrification is challenging, such as shipping and various industrial processes.
The company noted that interest from Germany has increased following a recent legislative review. This review mandates that by 2026, at least 0.1% of all road fuel placed on the German market must be certified as renewable fuel of non-biological origin, with targets rising to 1.5% by 2030 and 10% by 2040.
European Energy stated that the award highlights the importance of progressing with plans for a hydrogen pipeline connecting Denmark and Germany. The company expects further movement on the pipeline project, with both Danish producers and German offtakers showing increasing commitment to the market.
Frederiksen said: “We among others are dedicated to moving forward the green hydrogen industry in Denmark, and we now call on the incoming Danish Government to commit to constructing the hydrogen infrastructure that will transport our products to offtakers in Germany.”
Currently, European Energy operates two Power-to-X (PTX) facilities in Denmark: a green hydrogen production facility in Esbjerg and the Kassø e-methanol plant, which is operated jointly with Mitsui & Co.
The company’s PTX portfolio features projects across Europe, North America, Brazil and Australia.
In a separate development, European Energy recently began construction on a 225.5MW agrivoltaic project near Vizzini, Sicily. The company reached a final investment decision exceeding €200m for what it describes as Italy’s largest agrivoltaic scheme to date.
