The hydrogen industry calls for action: The first stage of the hydrogen pipeline must be built now
Thyssenkrupp’s investment in green steel
Thyssenkrupp, Germany’s largest steel producer, has advanced plans to replace fossil coal with green hydrogen in its production. At their factory in Duisburg, the company plans to produce 2.5 million tonnes of steel annually from 2029, with hydrogen as the decisive energy source. The problem is that today there are no pipelines to transport hydrogen in the quantities required.
Porsche and Stegra ensure deliveries
Porsche has already taken a step towards securing its steel supplies through an agreement with the Swedish steel producer Stegra. At the same time, Thyssenkrupp is forced to plan to use hydrogen in liquid form, delivered via tanker or bound in ammonia. However, these solutions are neither cost- nor time-efficient, especially when the transport takes place with trucks. Instead, the Danish hydrogen industry wants to see the hydrogen transported through a new pipeline that is planned to run underground through Jutland.
Danish authorities are expected to give notice in 2025
The infrastructure for this is already partially planned. The engineering work is complete, and Danish hydrogen producers have their investment plans ready. What is missing is a clarification from the Danish authorities about when and where the hydrogen network can be built. A decision is expected in the first quarter of 2025 at the latest, but the players are impatient. They believe that it is crucial that the infrastructure is built in time to meet the increasing demand from German industry.
The first stage can be started earlier
To speed up the process, it has been proposed that the line be built in stages. The first stage, a distance of approximately 186 kilometers, is estimated to cost between 4 and 5 billion Danish kroner. The full network would cost around 15 billion, but a gradual rollout would allow for earlier deliveries and ensure projects get off the ground.
H2 Energy Esbjerg and Høst PTX Esbjerg are pushing for a decision
H2 Energy Esbjerg is one of the major players in the Danish hydrogen industry. They are ready to invest SEK 14 billion in the Njordkraft project to produce 90,000 tons of hydrogen annually starting in 2028. But to make this possible, a functioning pipeline is required. Rasmus Bach Nielsen, global head of decarbonisation at Trafigura, emphasizes the importance of a quick decision on the infrastructure. He believes that a date is needed for when the hydrogen pipeline can be in operation for their investments to go ahead and to secure deliveries to Germany.
Høst PTX Esbjerg, a project supported by pension funds and capital from, among others, the Lego and Jysk families, is also dependent on a decision on the hydrogen pipeline. Their plans to invest SEK 8 billion in green hydrogen production have already been delayed, and any further delay risks impairing their ability to conclude long-term agreements with customers.
Interconnected hydrogen networks are required to meet demand
Time is short. In order for Europe’s industry to be able to meet its need for green hydrogen, a coherent network that can transport large quantities of hydrogen is needed. But without clear messages from the authorities and without sufficient investments, the industry can fall behind in the transition – and risk losing important customers.
The hydrogen industry in Denmark is united in its call: Build the first stage now.
