ENGIE and European Energy have signed a contract of cooperation to speed up the establishment of a large-scale Denmark renewable hydrogen project.
The project’s objective is to assist the developing European hydrogen market while contributing to the establishment of cross-border hydrogen infrastructure between Denmark as well as Germany. It is expected to be built near Kassø, the location of the first industrial-scale e-methanol plant in the world, within the municipality of Aabenraa. The current installation happens to be owned by Mitsui & Co. Ltd. and European Energy. The new facility will feature an electrolyser capacity of as much as 150 MW and is planned to be connected to the upcoming Danish-German Hydrogen Backbone infrastructure. The on-site produced hydrogen is anticipated to support industrial and mobility needs in Germany and help decarbonize difficult-to-access industries while improving business stability throughout the EU.
The contract for this large-scale Denmark renewable hydrogen project sets out a structure for cooperation between the parties in the subsequent phases of the project development, such as technical studies and work on hydrogen transportation. Under this agreement, ENGIE has the marketing entitlement of over 20,000 tons of renewable hydrogen per year.
The project is a sign of the increasing maturity of the hydrogen sector in Europe, wherein renewable power generation, hydrogen infrastructure, and industry, along with mobility demand for green hydrogen, are progressively being developed in tandem. The intended date for commercial execution of the project is in accordance with the planned deployment of hydrogen backbone infrastructure in Denmark around 2030.
According to Managing Director of Energy Management at ENGIE, Henri Domenach, “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.”
Opines EVP and Head of Power-to-X at European Energy, Rene Alcaraz Frederiksen, “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 decarbonization 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.”