ENGIE and European Energy have entered into a cooperation agreement to advance the development of a large-scale renewable hydrogen project in Denmark.
The project is designed to support the emerging European hydrogen market and contribute to the development of cross-border hydrogen infrastructure connecting Denmark and Germany. Located in Aabenraa Municipality, it will be developed near Kassø, home to the world’s first industrial-scale e-methanol plant. This existing installation is owned by Mitsui & Co. Ltd. and European Energy. The new facility will have an electrolyser capacity of up to 150 MW and is intended to connect to the future Danish-German Hydrogen Backbone infrastructure. The hydrogen produced at the site is expected to supply industrial and mobility demand in Germany and support the decarbonisation of hard-to-abate sectors while building business resilience within EU.
The agreement establishes a framework for collaboration between the parties during the next stages of project development, including technical studies, work related to hydrogen transport. Under this agreement, ENGIE reserves the marketing right of more than 20.000 tons of renewable hydrogen per annum. The project reflects the continued maturation of the European hydrogen sector, in which renewable power production, hydrogen infrastructure, and industrial and mobility demand for green hydrogen are increasingly being developed in parallel. The project’s targeted commercial operation date is aligned with the expected commissioning of Denmark’s hydrogen backbone infrastructure around 2030.
“We are enthusiastic about starting this collaboration with European Energy, as our two companies have strong complementarities, both geographically and across the electricity and hydrogen value chains. As a major midstreamer in Europe in both natural gas and electricity, ENGIE aims to support its clients in their decarbonization journey and to offer them renewable or low-carbon hydrogen at competitive prices. The Kassø project, developed by European Energy, a pioneering partner in the large-scale production of renewable hydrogen, will therefore enable ENGIE to strengthen its offering to its German clients from 2030 onwards,” said Henri Domenach, Managing Director of Energy Management at ENGIE.
“We are excited to enter into cooperation with ENGIE on this next journey into making green hydrogen. This will play an important role in connecting renewable energy production with industrial decarbonisation across Europe. Through our experience with the existing Kassø facility and the production of green fuels, we believe that we are well-positioned to be able to make a great project. With ENGIE’s large expertise into connecting production and demand of renewable energy, a cooperation between ENGIE and European Energy will benefit both parties,” said Rene Alcaraz Frederiksen, EVP and Head of Power-to-X at European Energy.
