Renewable Energy Projects: Why Did Everfuel Opt to Produce Green Hydrogen in Denmark for Export to Germany, Despite Comparable LCOH of €15.6/Kg?

published on 17 June 2024

Everfuel is proposing a massive green H2 project, 'Project Frigg,' with up to 2 GW of electrolyzer capacity in the municipality of Vejen. Once operational, Everfuel aims to transport the hydrogen to industrial customers in Germany via the hydrogen pipelines to be built by Danish transmission system operator Energinet by 2028.

But Why Build in Denmark and Transport to Germany? 🤔

⚡ Denmark’s power grid benefits from having over 90% renewable energy in its mix, making local H2 projects that draw power directly from the grid eligible for EU subsidies.

💡 In comparison, a project in Germany must specifically sign corporate PPAs from a renewable energy source to meet the same standard.

💲 This strategic advantage makes the ‘build in Denmark and export to Germany’ strategy profitable, despite both markets having a similar LCOH of around €15.6/kg.

The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.

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