On November 7, 2026, the German Federal Ministry for Economic Affairs and Energy (BMWE) signed funding contracts with three hydrogen projects in Denmark. The projects had previously been selected in the German-Danish “Auction-as-a-Service” window (AaaS) of the European Hydrogen Bank (EHB). The selection of the projects was carried out through a competitive procedure, meaning that those bidders were chosen that demonstrated the lowest funding requirement per kilogram of hydrogen. In total, around 1.17 billion euros in funding will flow to Denmark. Payments will be made between 2031 and 2041 on the basis of the actually delivered and certified production volumes. A similar principle has for years been the basis for the funding of electricity from wind and solar energy.
Lowest funding: 0.98 euros per kilogram of hydrogen
In absolute terms, the highest funding sum of around 550 million euros goes to the Höst PtX project in Esbjerg of the company CI ETF I Hoest P/S, at a bid price of 1.70 euros per kilogram. The Gemini project in Kassø of Kassø Hydrogen I ApS will receive approximately 378 million euros at a bid price of 1.77 euros per kilogram. The lowest bid price, at 0.98 euros per kilogram, comes from Everfuel Frigg 1 ApS for the Frigg 1 project in Vejen, which will be funded with around 245 million euros.
Danish pipeline project reaches booking threshold
In parallel with the funding contracts for the electrolysis projects, the planned cross-border hydrogen pipeline has also cleared a hurdle. According to the industry association Hydrogen Denmark, more than 500 MW of capacity have now been reserved. This means that the condition set by the Danish Parliament for advancing the project has been fulfilled. Denmark had previously repeatedly lowered the minimum requirements for the pipeline construction. According to the BMWE, a financially guaranteed booking of 100 MW by January 1, 2028, is now sufficient to trigger the prerequisite for the construction of the “Danish Hydrogen Backbone 1” (DHB1) pipeline.
The planned Danish section of the pipeline is to run 133 kilometers from Esbjerg to the German-Danish border. There, it is to be connected to the German hydrogen core network. According to Hydrogen Denmark’s assessment, the corridor could go into operation by 2030.
“With this cooperation, we are creating the foundation for a secure, long-term, and cost-efficient hydrogen supply for German industry,” said Frank Wetzel, State Secretary at the German Federal Ministry for Economic Affairs and Energy. The background to the cooperation is the high share of renewable energies in the Danish electricity mix, which, according to the BMWE, enables cost-efficient electrolysis. The aim of the AaaS window is to supply offtakers on the German core network with renewable hydrogen as cheaply as possible.
Danish producers plan nearly 1 GW of electrolysis
According to Hydrogen Denmark, the participating project developers represent an installed electrolysis capacity of nearly 1 GW. The delivery of hydrogen certified under the EU criteria for renewable fuels of non-biological origin (RFNBO) to German customers is scheduled to begin within the next five years.
According to Jacob Krogsgaard, CEO and founder of Everfuel, the company behind the Frigg project, close coordination between governments, project developers, and German industry is now decisive in order to bring together infrastructure, capacity bookings, and commercial agreements by the time of the final investment decision.
The next milestone is January 1, 2028. By this date, binding transport agreements with the Danish grid operator Energinet must be signed so that pipeline construction can begin.
