A 1GW green hydrogen project in the Danish port city of Esbjerg has been granted environmental approval, bringing it a step closer to reaching a final investment decision (FID).
Plant developer H2 Energy plans to install 50 proton exchange membrane (PEM) electrolysers supplied by US manufacturer Plug Power and start operations in the second half of 2025.
With an estimated 5,000 production hours a year, H2 Energy expects to produce around 90,000 tonnes of hydrogen annually.
In its application, H2 Energy cites the Esbjerg site’s proximity to offshore wind farms but it is unclear where the electricity to power its green hydrogen plant with be generated, although a 400kV ground cable will be built to connect the project to a substation in Endrup.
H2 Energy, which is majority-owned by commodities trader Trafigura, in 2022 announced a partnership with oil firm Phillips 66 to develop a network of up to 250 filling stations across Denmark, Austria, and Germany, although the two firms have been quiet on the initiative since.
Esbjerg Municipality Mayor, Jesper Frost Rasmussen, said the project will play a role in attracting additional Power-to-X companies to the region.
However, the Mayor warned, “There remains a need for clarity regarding the placement of a pipeline and its expected establishment, which are critical for the realisation of a robust hydrogen industry in Denmark.”
Supporting the environmental approval, Troels Ranis, Vice-President of the Confederation of Danish Industry and Director of DI Energy, said, “2023 presented many obstacles, but we have full faith in the Danish private and public decision makers fulfilling the potential of the hydrogen industry.
“2024 is a crucial year for the Danish hydrogen industry, and to start it off with a great step for one of the largest projects is a strong signal to the entire ecosystem.”
H2 Energy Europe was established as a joint venture between Trafigura and H2 Energy. In 2023, Trafigura became the majority owner of the company.
The facility, with a 1 GW electrolysis capacity, will contribute to the local economy by creating approximately 60 permanent jobs and up to 700 jobs during the construction phase. Additionally, the facility will also produce CO2-neutral surplus heat, which has the potential to supply the majority of households in Esbjerg with district heating.
While this approval represents a significant milestone for Denmark in leading the way in Power-to-X technology, H2 Energy Europe acknowledges the challenges that lie ahead.
The significance of the proposed pipeline, slated for completion by 2028, cannot be overstated, as it will play a vital role in distributing the green hydrogen produced by the facility to other countries in Europe, bolstering Denmark’s economy.
The facility will support the decarbonisation of heavy industries and road transportation, while also serving as chemical feedstock for the production of sustainable e-fuels like methanol and ammonia, advancing Europe’s green transition.
