On October 8, 2024, Denmark's Ministry of Climate, Energy and Utilities (KEFM) and Energinet announced that the Danish Backbone hydrogen transmission system is moving into its next phase. While the Danish government reaffirmed its support, the pipeline's commissioning has been delayed from 2028 to 2032, or possibly 2031. Amid this news, the German-Danish Chamber of Commerce industry roundtable with Dr. Philipp Steinberg (BMWK) and Marie Hindhede (KEFM) on October 9 could not have been timelier. During the bilateral discussion, the government representatives addressed the implications of both the delay and the project’s progress, followed by an insightful exchange with key industry leaders.
Continued Government Commitment and Cooperation
Both representatives reaffirmed their governments' strong commitment to advancing the green hydrogen economy in Germany and Denmark. Dr. Philipp Steinberg emphasized that there is a broad consensus in Germany regarding hydrogen, with support across the political spectrum. Both stressed the need for continued close cooperation to minimize the pipeline's delay, for which Marie Hindhede sees a lot of political will.
Optimism for Capacity Booking
Energinet’s market dialogue revealed strong demand of 4.2 GW of transportation capacity in 2031, raising optimism about meeting the capacity booking requirements for Danish state co-funding. With 0.8 GW in projects rated highly mature by Energinet, and another 1.3 GW tied to the tendered offshore wind areas in the North Sea, Marie Hindhede expressed optimism about reaching the 1.4 GW booking requirement for the full backbone.
The Delay poses Challenges for the Industry
The delay impacts industry players, particularly hydrogen projects currently in development, but also in the current offshore wind tenders, where business cases can depend on access to hydrogen infrastructure. The delay also complicates some companies' ability to make commitments in the upcoming capacity booking phase. Both governments and the transmission system operators recognize these challenges and are committed to working as transparently as possible in all upcoming steps.
A Hydrogen Offtake Roadmap
Dr. Philipp Steinberg provided a Roadmap on expected hydrogen offtake in Germany in the German-Danish context, where the BMWK details its expectations for the development of the hydrogen demand in Germany. The roadmap also highlights the instruments the German government plans to use to guide and stimulate demand growth.
