Set to be developed in two phases, the hub set to be in located in Holstebro, Denmark is hoped to accelerate the scale-up of green hydrogen as a zero-emission fuel for industry and mobility, offering a safe, reliable and efficient supply chain of clean energy.

Everfuel has said, once developed to full capacity, the hub will enable a significant reduction in the region’s carbon dioxide emission by feeding carbon-free hydrogen into a large portion of the municipality’s industrial and mobility activities.

Currently, Holstebro boasts Denmark’s second highest onshore wind and solar power output, offering a foundation to establish green hydrogen production capacity.

In the first phase of developments, set to be commissioned in 2023, hub partners will explore the production of e-methane and the use of hydrogen in industrial gas burners to produce e-methane at local biogas facilities, as well as beginning tests using hydrogen in current natural gas pipelines.

For the second phase, Everfuel intend to build a 100MW electrolyser, a hydrogen terminal, a distribution centre and a hydrogen refuelling station for heavy-duty and passenger vehicles. With a site for the electrolyser having already been secured, development is expected to commence in 2025.

Everfuel says the hydrogen produced from the second phase developments will phase out fossil fuels by replacing natural gas in selected industrial processes, with excess heating from hydrogen production planned to be distributed to local heating operator, Maabjer Energy Centre (MEC), owned by Vestforsyning and Struer Energi.

Commenting on the hub plans, Jacob Krogsgaard, CEO of Everfuel, said, The hub-concept represents a novel approach to scaling green hydrogen. It offers a strong value proposition for industry, the transport sector and municipalities, which is evident in the partner set up we can announce today.

“Independent energy supply has become more important than ever. Holstebro has a substantial power-to-X (PtX) potential, and the hub project shows the flexibility of green hydrogen and how a PtX facility can contribute across the local community.

“By connecting several partners to make a hydrogen hub, we assist the municipality in its energy transition, we showcase just how many industries can benefit from a PtX facility to ensure an independent and green supply of fuel, and last but not least, we create a good business case.”

In March (2022) the Danish Parliament proposed plans to reach up to 6GW of electrolysis capacity by 2030 to support the European hydrogen community.

Read more: Denmark to establish 6GW electrolyser capacity by 2030

The hub plans have received support from local industry who have already come forward to become partners and offtakers of green hydrogen. Dairy company, Arla, has said it will seek to replace natural gas with hydrogen to cut its carbon dioxide emissions.

David Boulanger, Executive Vice-President & Chief Supply Chain Officer at Arla, said, “Carbon-free hydrogen will be a key enabler to support the green transition and we look forward to collaborating with Everfuel on the possibilities for using it as a renewable energy source on our production sites.

“We have a clear sustainability ambition to reduce emissions with 63% by 2030 and the insights we gain in our partnership with Everfuel will help us to identify new sustainable solutions.”