ENGIE and European Energy have signed a cooperation agreement to develop a large-scale renewable hydrogen project in Denmark. The plant, in Aabenraa Municipality, will have up to 150 MW of electrolysis capacity and is targeted to start operations around 2030.

The project will be built near Kassø, home to an industrial-scale e-methanol plant owned by Mitsui and European Energy. It is intended to connect to the planned Danish-German Hydrogen Backbone and supply industrial and mobility demand in Germany. The scheme was selected under Germany’s hydrogen auction linked to the European Hydrogen Bank.

Under the agreement, ENGIE has reserved the marketing rights to more than 20,000 tonnes of renewable hydrogen per year. The deal frames the next development stages, including technical studies and hydrogen transport. “Our two companies have strong complementarities, both geographically and across the electricity and hydrogen value chains,” said Henri Domenach, Managing Director of Energy Management at ENGIE.

For the Baltic Sea region, the project is another sign that cross-border hydrogen infrastructure is taking shape around the Danish-German corridor, linking offshore and onshore renewable generation to industrial demand. European Energy, headquartered in Copenhagen, develops wind, solar and Power-to-X projects in more than 25 countries.