Pipeline eyed for hydrogen shipments between Denmark, Germany

Denmark’s Everfuel A/S said it plans to use a pipeline to supply up to 10,000 tons of green hydrogen per year to an industrial offtaker in Germany.

Under the Letter of Intent (LoI), the shipments will begin in 2028.

The undisclosed customers’ initial demand is expected to match the hydrogen output from a 100 MW electrolyser, aligning with Everfuels’ strategy of developing standardized, scalable electrolyser modules tailored to demand. The customer expects to increase consumption of green hydrogen, classified as renewable fuels of non-biological origin (RFNBO), over time in accordance with its plans for decarbonizing industrial processes.

Everfuel signs Letter of Intent with German industrial offtaker for initial supply of 10,000 tons of green hydrogen per year. (Everfuel)

“This is a validation of Everfuel’s focused strategy for delivering green hydrogen at scale to industrial customers and I would like to acknowledge our partner’s ambition to pioneer the hydrogen transition in Germany. We share a strong commitment to enabling material carbon emission reductions and creating a platform for mutual long-term value creation,” said Jacob Krogsgaard, founder and CEO of Everfuel.

The German partner understands Denmark’s significant potential for green hydrogen export and recognises Everfuel’s unique strategic position and plans for establishing hydrogen production capacities in the attractive Danish power zone DK1.

Everfuel may supply the RFNBO hydrogen from project Sif or other future electrolyser projects under development. The LoI is the first step towards a final commercial agreement between the parties, which is conditional upon several factors, including the establishment of hydrogen pipeline infrastructure between Denmark and Germany connecting Everfuel’s production facility and the customer.

“On 5 April 2024 the Danish government announced that it is willing to take majority of the investment risk of the Danish hydrogen backbone if market participants provide sufficient commitment. Today’s agreement is a cross-border confirmation of the willingness from Everfuel and partner to show such a commitment. The 5 May 2024 Everfuel responded to Energinet’s (Danish TSO) market exploration deadline for backbone capacity reservation. Everfuels indication of capacity reservation included a significant commitment, which also includes the German industrial offtaker, and is showing Everfuel dedication to make large scale green hydrogen production and distribution happen,” said Jacob Krogsgaard, founder and CEO of Everfuel.

The company said RFNBO is considered a critical enabler for decarbonizing industry and transport sectors in Germany, in line with EU’s Renewable Energy Directive (RED II) targets.