ENGIE and European Energy have signed a cooperation agreement to advance the development of a large-scale renewable hydrogen project in Denmark, strengthening efforts to support Europe’s growing hydrogen economy and accelerate industrial decarbonisation.The project will be located in Aabenraa Municipality near Kassø, a site that is already recognized for hosting the world’s first industrial-scale e-methanol plant.
The facility is jointly owned by Mitsui & Co. Ltd. and European Energy and has positioned Kassø as an important hub for renewable fuel production. Building on this foundation, the new hydrogen project is expected to play a key role in supplying green hydrogen to European markets and supporting the region’s energy transition ambitions.
The planned facility will feature an electrolyser with a capacity of up to 150 MW and is designed to connect to the future Danish-German Hydrogen Backbone infrastructure. Once operational, the project is expected to produce renewable hydrogen for industrial applications and mobility sectors in Germany, helping reduce emissions in industries that are difficult to decarbonise through direct electrification.
The project is also expected to contribute to greater energy security and business resilience across the European Union by supporting the development of a reliable and diversified clean energy supply chain.Under the cooperation agreement, ENGIE and European Energy will collaborate on the next stages of project development, including technical assessments, infrastructure planning, and activities related to hydrogen transportation.
The agreement provides a framework for both companies to combine their expertise in renewable energy, hydrogen production, and energy markets to help bring the project to commercial operation.As part of the partnership, ENGIE has secured the right to market more than 20,000 tonnes of renewable hydrogen annually from the facility.
This will strengthen the company’s ability to meet growing customer demand for low-carbon energy solutions, particularly in Germany, where hydrogen is expected to play an increasingly important role in industrial decarbonisation strategies.The project reflects the continued growth and maturation of Europe’s hydrogen sector.
Across the continent, renewable electricity generation, hydrogen production facilities, transport infrastructure, and end-user demand are increasingly being developed in parallel, creating the foundations for a fully integrated hydrogen economy. The project’s planned commercial operation is aligned with the expected commissioning of Denmark’s hydrogen backbone infrastructure around 2030, ensuring that production capacity and transport networks can be developed simultaneously.
Henri Domenach, Managing Director of Energy Management at ENGIE, said the partnership brings together two companies with complementary strengths across both the electricity and hydrogen value chains. He noted that ENGIE aims to support customers in their decarbonisation efforts by providing access to renewable and low-carbon hydrogen at competitive prices.
According to Domenach, the Kassø project will enhance ENGIE’s ability to serve German customers and expand its renewable hydrogen offering from 2030 onward.Rene Alcaraz Frederiksen, Executive Vice President and Head of Power-to-X at European Energy, said the collaboration marks an important step in connecting renewable energy production with industrial decarbonisation across Europe.
He highlighted the company’s experience gained through the existing Kassø facility and its broader portfolio of green fuel projects, which provide a strong foundation for the successful development of the new hydrogen plant. Frederiksen also emphasized that ENGIE’s expertise in linking renewable energy supply with market demand will create significant value for both companies and help accelerate the adoption of green hydrogen.
The partnership represents another milestone in Europe’s transition toward a cleaner energy system and demonstrates the growing commitment of major energy companies to scaling up renewable hydrogen production.
By combining renewable power generation, hydrogen infrastructure, and industrial demand, the project is expected to support long-term decarbonisation goals while strengthening the competitiveness and sustainability of European industry.
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