Comprehensive Update: Hydrogen Investment and Technology in Denmark - From Offshore Wind Pioneer to European PtX Hub
October 20, 2026 | By Annie Nguyễn
In light of the visit to Denmark by General Secretary and President To Lam, VAHC has prepared an update on the Nordic nation’s hydrogen investments and technology.
Copenhagen – Denmark, a Nordic nation with a population of just 5.9 million, is cementing its position as one of Europe's leading hubs for green hydrogen development and Power-to-X (PtX) technology. By leveraging its advantage in offshore wind, the Danish government and businesses are rolling out a comprehensive strategy spanning production, infrastructure, and export, with the goal of becoming a key link in the continent's clean energy supply chain.
[Photo: General Secretary and President To Lam delivering a policy address at the University of Copenhagen on October 19, 2026]
National Policy and Investment Targets
Denmark's national PtX strategy sets an ambitious target: achieving 4 to 6 GW of electrolysis capacity by 2030. To realise this, the government has rolled out several financial support packages, including dedicated PtX auction funds and tax incentives. A key highlight is the cross-border hydrogen pipeline project between Denmark and Germany, expected to break ground in the 2027-2028 period. This pipeline will connect green hydrogen production hubs in western Denmark with major industrial consumption centres in Germany, opening up a promising export market.
Key Projects and Technologies
Denmark's hydrogen sector is witnessing strong participation from both major corporations and high-tech startups.
First, in electrolysis technology, Topsoe (headquartered in Copenhagen) is one of the world's leading suppliers of solid oxide electrolysis (SOEC) and proton exchange membrane (PEM) technology. Topsoe's SOEC technology is considered to have superior efficiency compared to traditional methods, especially when combined with waste heat from industrial plants.
Second, in synthetic fuel (e-fuels) production, European Energy's Kassø plant (in Aabenraa) is one of the world's largest commercial e-methanol production facilities. The plant uses power from wind and solar farms to produce hydrogen, which is then combined with captured CO₂ to create e-methanol, supplying fuel for Maersk's container ships. This is a practical demonstration of converting renewable energy into fuel for the maritime transport industry.
Third, in infrastructure and energy islands, the North Sea Energy Island project, developed by Ørsted and partners, is expected to become a large-scale green hydrogen production and distribution hub, connecting offshore wind farms with the mainland and neighbouring markets.
Challenges and Outlook
Despite its advantages, Denmark's hydrogen industry still faces significant challenges. Green hydrogen production costs remain high compared to grey hydrogen, while pipeline and refuelling infrastructure is not yet complete. Additionally, the lack of long-term offtake agreements from heavy industries is a barrier causing delays in many PtX projects.
However, with strong government commitment, the involvement of leading companies, and a broad international cooperation network, Denmark is expected to overcome these initial difficulties. The completion of the hydrogen pipeline to Germany and the scaling up of e-methanol plants will be important levers for Denmark to not only achieve energy self-sufficiency but also become a stable green hydrogen supplier for Europe in the coming decade.
