The Danish Ministry for Climate, Energy and Utilities has approved the 3 GW Syvtallet hydrogen pipeline to start construction works. The project is being developed by Energinet, and it benefits from a government loan to finance its construction. The company estimates a total investment of DKK7.5bn (€1bn) on the project, and it expects to repay the loan by 2060 with tariffs collected for the use of the pipeline. The next step is a capacity sale by Energinet in 2026, where the future users of the infrastructure are expected to commit to transport at least 0.5 GW before the pipeline is installed.
The 133 km pipeline consists of new and converted gas pipelines, and it will run from the cities of Esbjerg to Frøslev, at the German border, to provide direct access to the German market. Energinet also plans to enter into an agreement with Gasunie to prepare the German side of the pipeline ready by 2030, when it is scheduled to start commercial operations.
Denmark is also setting up a subsidy of up to DKK10.6bn (€1.5bn) over 30 years to lower transport costs of hydrogen to a market competitive level and lower the booking requirement for the establishment of the Syvtallet pipeline, so that producers must commit to the transport of a minimum of 0.5 GW in order for the pipe to be realised.