Europe’s hunger for hydrogen

Infrastructure projects get funding
h2-view.comDenmark is planning a U$1.1bn (almost N$19 billion) subsidy package to accelerate the launch of a 340 km hydrogen pipeline to Germany. The Danish ministry of climate, energy and utilities proposes to “reduce the capacity booking requirement”
Denmark plans a US$1.1bn (almost N$19 billion) subsidy package to accelerate the launch of a 340 km hydrogen pipeline to Germany.

The Danish ministry of climate, energy and utilities is proposing to, “reduce the capacity booking requirement,” so that the, “first phase of the pipeline can proceed based on capacity from a single project,” according to European hydrogen development news website H2 View (h2-view.com).

Danish state owned electricity and gas supplier Energinet now needs just one major hydrogen producer to commit to using the pipeline in order to have the first phase completed by 2030, according to H2 View. The speciality news website reports that Denmark plans up to DKr8bn of subsidies over 30 years to build the first section of the pipeline, whilst the government has also announced that a DKr7.5bn (US$1.4bn) loan will be granted to Energinet, to support the project construction.

The infrastructure will carry green hydrogen produced in Denmark’s clusters around Fredericia, Esbjerg and Holstebro into Germany and beyond, feeding into the European hydrogen backbone.

“Denmark and Europe need green electricity and energy,” explained minister for climate, energy, and utilities, Lars Aagaard, adding that Denmark “must play a role in kick-starting Europe’s green hydrogen production.” He said; “At the same time, this represents a major green business opportunity for Denmark. That is why we are increasing funding to make it possible to export hydrogen to Germany by 2030 through the first stage of the hydrogen pipeline project, helping to set the wheels in motion. This is just the starting point, not the final destination.”

On the demand side, industrial and steel sector companies in Germany are expected to be the primary consumers of the transported hydrogen. H2 View reports that the pipeline network is expected to feed into Heidenau, a town located south of Hamburg, and will connect Denmark to the majority of Germany’s industrial companies.



Swedish-French connection

In Sweden, French-based Lhyfe plans to build a 10MW green hydrogen plant in the south, having secured €11m (US$11.4m) in funding from the Swedish environmental protection agency. The plant in Vaggeryd, Jönköping County, will have the capacity to produce up to 4.4 tonnes of green hydrogen per day, and will supply local refuelling stations in the region that are currently under construction, as well as industrial heating and production processes, H2 View reports.

Lhyfe expects to generate the site’s first kilogrammes of hydrogen in 2027. The funding from Klimatklivet, Sweden’s climate investment programme, will finance the project’s development and design phases, equipment costs and construction work. It represents around 35% of the project’s €31.5m (US$32.7m) required investment. Vaggeryd will be Lhyfe’s second Swedish plant after it secured €11m from the environmental protection agency last June, to develop a 10MW site in Trelleborg. “Lhyfe already delivers green hydrogen to industrial customers in Sweden, and with the two facilities now granted Klimatklivet support, Lhyfe ensures a robust and competitive supply solution for green hydrogen for our customers in Sweden,” said Sara Wihlborg, Country Manager Sweden at Lhyfe.

... and in Germany

Meanwhile the German federal state of Hesse has presented plans for a 280km hydrogen network which could cost up to €300m (US$311m).

Hesse will be connected to national hydrogen transport routes via the H2ercules, Flow and Werne-Eisenach Line pipelines. Additional pipelines will also be required to “further distribute hydrogen across the region,” the Hessian ministry for economy and energy said online. A total of 15 regional gas network operators have conducted feasibility studies for a hydrogen network in northern and central Hesse, according to h2-view.com.

The study outlined a pipeline corridor extending from Lahntal to the Kassel area, supplemented by local branch lines. It found that industry in Hesse could need between 8.5TWh and 9TWh of green hydrogen per year between 2032 and 2035.

The Hessian Ministry has said complete hydrogen supply using the existing gas network is not currently possible, as natural gas customers still need to be served by current networks. Minister for economic affairs and energy, Kaweh Mansoori said, “I welcome the commitment to a Hessian hydrogen economy and thank the participating network operators for their involvement in the feasibility study,” h2-view.com reports. The project will connect the central and northern Hesse network to the German national hydrogen core network, or the Wasserstorff-Kernnetz.

EU funded

The European Commission will back 41 cross-border energy infrastructure projects with up to €1.25bn (US$1.3bn) in grants, including over €250m for 21 hydrogen development studies, h2-view.com reports. The EU has stated the funding will “help alleviate investment risks associated with this nascent market” and “complement the hydrogen policy framework.” Studies being carried out for the Spanish hydrogen backbone have been supported with up to €32.5m (US$33.8m), whilst Nordic hydrogen route feasibility and design studies, and BarMar-H2Med Hydrogen Interconnector studies, have both secured more than €28m (US$29m) by the beginning of this month.

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