Esbjerg’s 1GW Green Hydrogen Facility Receives Environmental Nod, Edging Closer to FID

The H2 Energy Europe project, aimed at building a 1GW green hydrogen production facility in Esbjerg, Denmark, has taken a significant leap forward with the recent receipt of environmental approval. This milestone brings the project closer to its final investment decision (FID).

Set to be operational by 2028, the facility plans to use 1GW of Plug Power PEM electrolysers, fueled by offshore wind energy, to produce approximately 100,000 tonnes of green hydrogen annually.

The hydrogen produced at the Esbjerg site is earmarked for use across the energy and transportation sectors in Northern Europe and as a chemical feedstock for e-fuel production. Additionally, the facility aims to utilize excess heat for district heating, potentially supplying the majority of households in Esbjerg.

In an innovative move, Mark Pedersen, Operations Manager at H2 Energy Europe, revealed plans to use wastewater for electrolysis. This method aims to alleviate the pressure on drinking and groundwater resources, expecting to consume over one million cubic meters of water annually for the electrolysis process.

Jesper Frost Rasmussen, Mayor of Esbjerg Municipality, highlighted the project’s role in drawing more Power-to-X companies to the region. However, he emphasized the need for clarity regarding the placement and establishment of a pipeline, critical for developing a robust hydrogen industry in Denmark.

Troels Ranis, Vice-President of the Confederation of Danish Industry and Director of DI Energy, supported the project’s environmental approval. He expressed confidence in Danish private and public decision-makers to realize the hydrogen industry’s potential despite challenges faced in 2023. He deemed 2024 a pivotal year for the Danish hydrogen industry, with this project marking a significant start for the sector.

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H2 Energy Europe, initially a joint venture between Trafigura and H2 Energy, saw Trafigura become its majority owner in 2023.

Additionally, in December 2023, H2 Energy Europe received UK Government funding for a planned 20MW hydrogen production facility at the port of Milford Haven in South Wales.

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