Denmark has announced it will invest over $2 billion in a hydrogen pipeline project linking the Danish port city of Esbjerg to the German border. 

The Danish embassy in Berlin said Monday the investment would include a loan of 7.4 billion Danish kroner ($655 million) and operating subsidies of up to 8.3 billion kroner ($735 million). 

According to the Danish government, the hydrogen export route should be operational by 2030, an ambitious deadline earlier than previously predicted. 

The pipeline’s accelerated development aligns with the new aim of developing a cross-border hydrogen transmission system between the two countries after an agreement with numerous local parties. 

In spring 2025, the Danish grid operator and project developer, Energinet, will formally apply for the hydrogen infrastructure to the energy ministry.

While the pipeline to Germany is the main focus of the first phase, there are also ideas for a northern route to Lille Torup and an eastern route to Fredericia, two important Danish energy hubs.

Citing difficulties, Energinet said in November that the pipeline to Germany was expected to be operational by late 2031. 

The project is a collaboration between Energinet and the German unit of Dutch gas grid operator Gasunie, which initially aimed to establish a cross-border transmission connection for green hydrogen transport from Denmark to Germany by 2028.