Danish company Everfuel is proposing to develop a 2-gigawatt green hydrogen production project at the Revsing Energy Park in Vejen, Denmark.

The so-called Frigg project would be Everfuel’s first large-scale production facility dedicated to hydrogen supply via pipeline to industrial customers in Germany. The multi-phase development is undergoing feasibility work to secure access to the available Danish-German H2 pipeline infrastructure.

Last month, Everfuel announced a letter of intent (LOI) with an unnamed German industrial customer for an initial supply of up to 10,000 tonnes/year of green hydrogen. In addition to this customer, Frigg would feed green hydrogen to other industrial offtakers.

The project will be located at the intersection between the North-South and East-West hydrogen backbone, which is expected to be the first section to be built and operational by 2028, Everfuel says. Its production capacity is to be scaled up with market demand, Kallanish understands.

“We are excited to move ahead with the Frigg project which represents a significant expansion to the development of Denmark’s hydrogen production infrastructure,” Everfuel ceo Jacob Krogsgaard says in a note on Friday. “Frigg is a key enabler for our commercial discussions with our LOI-partner and other industrial customers in Germany. The project is also an important element in the dialogue with the Danish authorities regarding Everfuels indicated pipeline capacity reservations.”

Before an investment decision can be made, the project must be included by the Vejen municipality.

According to Aurora Energy Research, with a 90% renewable-powered grid, Denmark is well positioned to be a supplier to Europe’s high hydrogen demand – particularly to Germany. Demand in Germany is set to account for up to 25% of total volumes in Europe across the next three decades, the research house estimates.

“Danish hydrogen remains cost-competitive with current German production costs,” Aurora says in a study prepared for Everfuel and Hy24. “This holds true even after accounting for pipeline transport costs from Denmark to Germany and assuming that Germany-based electrolysers will continue to be exempt from additional charges.”

The levelised cost of hydrogen plus transport from West Denmark to Germany is set to be 17% lower than domestic green hydrogen production in Germany, the study claims.