MorGen Energy, the green hydrogen development company owned by Trafigura, has been selected for up to €422.75 million in conditional funding through the European Hydrogen Bank auction, backed by the EU Innovation Fund. The support will help advance the company’s Njordkraft project in Esbjerg, Denmark, toward commercial operation.
The funding award marks a significant step for the project’s first development phase, which includes 300 MW of electrolysis capacity and could later expand to as much as 1 GW.
Located on Denmark’s west coast, Njordkraft is being developed to produce renewable hydrogen that meets the EU’s RFNBO standards. The hydrogen is intended for industrial customers in Germany and other parts of mainland Europe, particularly sectors with growing pressure to reduce carbon emissions, including steel production, refining, and heavy manufacturing.
The project is planned to connect directly to the future Danish-German hydrogen backbone network, which will link Esbjerg with Heidenau near Hamburg. This infrastructure is expected to play a key role in enabling large-scale hydrogen transport across Northern Europe.
At full operation in its initial phase, Njordkraft is expected to produce around 45,500 tonnes of renewable hydrogen annually. The facility will also benefit from access to Denmark’s renewable electricity market, supporting competitive hydrogen production costs.
The EU grant follows a competitive selection process under the European Hydrogen Bank, as Europe accelerates implementation of RED III regulations that increase demand for renewable hydrogen and hydrogen-based fuels. These rules are particularly important for refineries, fuel suppliers, and other industrial sectors required to reduce emissions.
MorGen Energy has already carried out extensive preparatory work on the project, including land acquisition, permitting, front-end engineering and design activities, grid connection planning, and financing preparations.
As part of the Trafigura Group, the company also has access to expertise in global energy, power, gas, and carbon markets, which it says will support the commercialization of renewable hydrogen and related infrastructure projects.
The company will now continue commercial negotiations with potential industrial customers while working toward a final investment decision for the Esbjerg development.
