Denmark's government has approved the construction phase of a major hydrogen pipeline, taking a significant step toward becoming a key exporter of green hydrogen to Germany, where demand is projected to increase significantly by 2030.  

Dubbed "Syvtallet," the project will build a 133-kilometer pipeline from Esbjerg to the German border at Frøslev, supplying about 3 gigawatts once operational.

Developed by Denmark’s state-owned transmission operator Energinet, the project will be financed through a state-backed loan of up to DKK 7.5 billion ($1.06 billion), which the company will repay via user tariffs. 

Additionally, the government will provide up to DKK 10.6 billion ($1.5 billion) in operational support over 30 years to reduce transport costs and ensure the project's viability.

Expected to be completed in 2030, coinciding with a planned German pipeline on the other side of the border, the coordinated effort is aimed at creating a cross-border hydrogen market and enabling the decarbonization of industrial and heavy transport sectors that are difficult to electrify directly.

This commitment is vital for moving the project from planning to reality, ensuring that the pipeline, which is a cornerstone of Denmark's strategy to support its burgeoning hydrogen sector and meet its goal of 4-6 GW of electrolysis capacity by 2030, will have a market once operational. 

With the project’s start already approved, the next crucial step is the capacity booking process, slated to begin in 2026, with the companies obligated to book a minimum of 0.5 GW of the pipeline's capacity for the project to proceed.

The project’s approval highlights Denmark's commitment to leveraging its offshore wind resources and integrated energy sectors to lead in the green hydrogen value chain.