en.Wedoany.com Reported - European Energy has secured up to €228 million (approximately $265.85 million) in funding from the German government, sourced from the German hydrogen auction scheme under the European Hydrogen Bank (EHB) framework.

The company is one of three selected projects in this auction, and the funds will be used to build an additional 150 MW of hydrogen capacity in Denmark. Rene Alcaraz Frederiksen, Executive Vice President and Head of Power-to-X (PTX) at European Energy, stated that this support helps drive the expansion of hydrogen capacity related to Kassø and strengthens Europe's renewable fuel infrastructure.

This auction is part of Germany's strategy to encourage the development and import of renewable hydrogen and its derivatives, aiming to support decarbonization in Europe's industrial and transport sectors. The European Hydrogen Bank, established by the European Commission, uses competitive auctions and targeted support to bridge the cost gap between renewable hydrogen production and market demand.

European Energy noted that demand for renewable hydrogen and its related products, such as e-methanol, is growing, particularly in shipping and industrial processes where direct electrification faces challenges. The company said market interest has risen following recent legislative reviews in Germany. The regulation requires that at least 0.1% of all road fuels on the German market come from renewable fuels of non-biological origin by 2026, rising to 1.5% by 2030 and 10% by 2040.

European Energy believes this award highlights the importance of advancing plans for a hydrogen pipeline connecting Denmark and Germany. The company expects further progress on the pipeline project, with increasing commitments from both Danish producers and German offtakers. Frederiksen called on the incoming Danish government to commit to building hydrogen infrastructure to transport products to German offtakers.

Currently, European Energy operates two Power-to-X (PTX) facilities in Denmark, including a green hydrogen production facility in Esbjerg and the Kassø e-methanol plant, co-operated with Mitsui & Co. The company's PTX project portfolio spans Europe, North America, Brazil, and Australia. Additionally, European Energy recently began construction of a 225.5 MW agrivoltaic project near Vizzini, Sicily, Italy, with a final investment decision exceeding €200 million, described as Italy's largest agrivoltaic project to date.

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