Denmark’s 1GW Green Hydrogen Production Facility Receives Important Environmental Approval from Authorities

(H2 Energy Europe) The approval is a key step in establishing an European hydrogen industry, ensuring its safety and benefits to the local community -- H2 Energy Europe announces that it has received environmental approval for its large-scale green hydrogen production facility in Esbjerg, Denmark. This achievement marks a significant milestone for the project, bringing it closer to a Final Investment Decision (FID).

H2 Energy Europe’s project aligns with Esbjerg’s Vision 2025, which aims to transform the municipality into a sustainable energy metropolis, reinforcing Denmark’s position as a leader in sustainable energy solutions.

Jesper Frost Rasmussen, the mayor of Esbjerg municipality, states the importance of the environmental approval for the entire green energy sector in Esbjerg and Europe: “The environmental approval granted to the upcoming hydrogen plant by H2 Energy Europe is of immense significance for Esbjerg, positioning it as a leading green business city in Europe. This development sends a decisive message to Christiansborg and other green energy companies, demonstrating that private investors can receive approvals for their projects and are prepared to commence construction of large-scale hydrogen facilities in the city. Such initiatives promise substantial business prospects for Esbjerg Municipality, Denmark, and Europe at large.” Jesper Frost Rasmussen elaborates further on the importance, “H2 Energy Europe will play a pivotal role in attracting additional Power-to-X (PtX) companies to Esbjerg. However, there remains a need for clarity regarding the placement of the hydrogen pipeline and its expected establishment, which are critical for the realisation of a robust hydrogen industry in Denmark. We hope for a resolution on these matters very soon, further advancing the region’s green energy ambitions.”

Mark Pedersen, Operations Manager at H2 Energy Europe, expresses the company’s dedication to safety and sustainability, saying: ‘Our foremost priority is the safety of our operations. Achieving an environmental approval for a project of this size and at such an early stage in the year highlights our commitment to ensuring the well-being of our community. It also reflects the supportive and forward-thinking approach of Esbjerg municipality. We are deeply grateful for their cooperation and shared vision in making this project a reality.” Adding to the benefits of the project, Mark adds, “Our facility is set to revolutionise the way we think about wastewater by transforming it from local treatment plants into green hydrogen. This innovative approach is expected to absorb more than 1 million cubic meters of water annually for electrolysis. This will significantly reduce the strain on drinking water and groundwater resources, further advancing our mission towards sustainable development.

Troels Ranis, Vice President at the Confederation of Danish Industry and Director of DI Energy, emphasises the importance of this project, stating, “It is great that H2 Energy Europe has obtained their approval for the Environmental Impact Report. Both H2 Energy Europe and Esbjerg Municipality are leading the way in terms of driving national development, and this deserves infinite applause. 2023 presented many obstacles, but we have full faith in the Danish private and public decisionmakers fulfilling the potential of the hydrogen industry. 2024 is a crucial year for the Danish hydrogen industry, and to start it off with a great step for one of the largest projects is a strong signal to the entire ecosystem.”

The facility, with a 1 GW electrolysis capacity, will contribute to the local economy by creating approximately 60 permanent jobs and up to 700 jobs during the construction phase. Additionally, the facility will also produce CO2-neutral surplus heat, which has the potential to supply the majority of households in Esbjerg with district heating.

While this approval represents a significant milestone for Denmark in leading the way in Power-to-X technology, H2 Energy Europe acknowledges the challenges that lie ahead. The significance of the proposed pipeline, slated for completion by 2028, cannot be overstated, as it will play a vital role in distributing the green hydrogen produced by the facility to other countries in Europe, bolstering Denmark’s economy. The facility will support the decarbonisation of heavy industries and road transportation, while also serving as chemical feedstock for the production of sustainable e-fuels like methanol and ammonia, advancing Europe’s green transition.

In 2020, Trafigura announced that it would invest in H2 Energy and formed a joint venture, H2 Energy Europe, to build green hydrogen eco-systems in Europe. In October 2023, Trafigura became the majority owner of H2 Energy Europe. Major projects covering different parts of the hydrogen value chain include working towards a final investment decision on a 1GW scale green hydrogen project in Esbjerg, Denmark converting offshore wind power and a 20MW green hydrogen project in Milford Haven, South Wales. H2 Energy Europe is working towards the roll out of a hydrogen filling station network with sites along major transport routes across Germany. READ MORE