Danish government selects Energinet, Evida to own and operate hydrogen pipelines

LONDON (ICIS)–The Danish government has announced that state-owned companies Energinet and Evida will own and operate hydrogen pipelines in the country once operational, it was announced 24 May.

The government has agreed this with the Socialist People’s Party, the Liberal Alliance, the Conservative People’s Party, Enhedslisten, the Radical Liberal Party, the Danish People’s Party and the Alternative.

Energinet currently owns, operates and is responsible for the development of both the transmission systems for electricity and natural gas; Evida is a Danish gas distribution company.

The move is to allow for the flow of hydrogen both within Danish borders and for export as soon as possible, as the country has ambitions to become an exporter of renewable hydrogen in the coming years.

Denmark announced in April the PtX tender, a support scheme for renewable hydrogen production with 1.25bn DKK (€168m) for the first round with a maximum subsidy of €1.93/kg.

The country aims to have between 4GW and 6GW of electrolysis capacity online by 2030, powered via offshore wind turbines to facilitate both domestic use and exports to Germany.

Indeed, a report from Energinet and Gasunie released 12 May said that production by the end of the decade could reach 15TWh, with potential to increase to as much as 98TWh by 2050.

The report also noted that Denmark could have a 90% export share of its domestic renewable hydrogen production, with the bulk of which set to be moved via pipeline south to neighbouring Germany.