Germany and Denmark commit to creating the largest green hydrogen market

mercado de hidrógeno verde

Inspenet, December 2, 2023.

Prominent German industry and the extensive Danish energy sector have joined forces to establish the world’s largest green hydrogen market. Renowned German companies such as Airbus, Basf, Thyssenkrupp, Siemens Energy, Man Energy Solutions, among others and Danish companies such as Dansk Industri and Danfoss, have partnered with important companies in the energy sector, including RWE, TotalEnergies, CIP, Orsted, Vattenfall and Uniper, to carry out this initiative.

Thus, they assure in a joint statement that “We, the Danish and German signatories, are committed to developing a world-leading green policy. We firmly believe that green hydrogen and its derivatives have the potential to play an important role towards a net zero emissions economy. Combined, Denmark and Germany have all the necessary capabilities to provide electrolysis, develop large-scale production, transportation and use of green hydrogen before 2030. We recognize the urgent need to develop consumption and infrastructure to facilitate the development of green hydrogen from, for example, offshore wind in the North Sea and onshore wind and solar energy

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It combines the most extensive offer of renewable energies, represented by Denmark, with the main consumer of hydrogen on the continent.

The goal established in REPowerEU for the production of renewable hydrogen in Europe is 10 million tonnes (equivalent to 330 TWh of hydrogen) by 2030. Germany leads the industrial demand for hydrogen in Europe, with a need of 55 TWh per year and it is anticipated that this will increase considerably by 2050.

According to the German national hydrogen strategy, import demand of 45-90 TWh of hydrogen is forecast by 2030, in addition to domestic production of 1 million tonnes (equivalent to 30 TWh). This provides German industrial companies with a unique opportunity to lead the way towards a large-scale green economy, contributing to the creation of a significant hydrogen market with notable associated CO 2 reductions.

As for the Danish-German region around the North Sea, it is seen as a key point for the transition towards a hydrogen economy in Europe. This area brings together all the necessary elements, such as vast renewable energy potential, especially offshore wind energy in the North Sea, electrolyser manufacturing capacity, technological know-how in hydrogen and its derivatives and a growing demand for hydrogen both in the existing industrial sector as well as in new sectors.

In the Danish region, the electricity grid is projected to reach 90% renewable energy in the area near the North Sea from 2028. This would create the ability to supply certified green hydrogen. However, for this scenario to materialize, it is essential to have the full support of both states involved: Germany and Denmark.

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