Danish renewable energy investor Copenhagen Infrastructure Partners (CIP) signed a memorandum of understanding (MOU) with German energy firm Uniper on Wednesday, May 1, to supply 140,000 tonnes of green hydrogen per year to Germany.

The hydrogen will come from CIP's 1-gigawatt (GW) HØST PtX Esbjerg project, located on Denmark's west coast, with the companies expecting the project to begin feeding hydrogen into a new cross-border pipeline to Germany by the end of 2028 as reported by Hydrogeninsight reported on Friday May 3, 2024.

With the completion of the pipeline considered a key factor for the MOU to progress to a binding offtake agreement, the agreement comes amid a growing push for green hydrogen development in Europe. 

Last year, Germany and Denmark pledged to connect their planned hydrogen pipeline networks. Additionally, the European Union designated two cross-border hydrogen pipeline projects between the two countries as "Projects of Common Interest" in April, granting them expedited permitting and access to funding.

Uniper intends to incorporate the green hydrogen from HØST into its green gas portfolio, targeting industrial customers with "varying flexibility profiles" and diverse contract lengths. This approach aims to address industry concerns about locking into long-term contracts for green hydrogen at current high prices.

The collaboration between CIP, a leader in developing renewable energy projects, and Uniper, a major player in the German energy market, is a crucial step in fostering the green hydrogen market in Europe. 

CIP's expertise in power-to-gas projects, combined with Uniper's established customer base, creates a strong foundation for bringing green hydrogen to industrial users in Germany.

A final investment decision on HØST, estimated to cost more than $2.1 billion (€2 billion), is expected in 2025 while permitting for the project is on track for completion by the third quarter of this year.

Initially, the project was envisioned to produce green ammonia for fertilizer or shipping. However, CIP confirmed the project will now focus on supplying hydrogen directly via pipeline due to the agreement with Uniper. The permitting application, however, still includes an ammonia production component.

CIP plans to source electricity for the project from offshore wind farms in the North Sea, leveraging the anticipated development of 10 GW of wind capacity in the coming years. 

Additionally, waste heat from hydrogen production will be utilized for district heating in the Esbjerg-Varde area, benefiting an estimated 15,000 households.