ENGIE (French energy group) and European Energy (renewable energy company) have signed a cooperation agreement to develop a large-scale renewable hydrogen facility in Aabenraa Municipality, Denmark, marking a significant step in cross-border hydrogen infrastructure between Denmark and Germany.

Project Overview and Location

The project will be situated near Kassø, a location already established as a landmark in the green fuels industry as the home of the world's first industrial-scale e-methanol plant, an existing installation owned by Mitsui and Co. Ltd. and European Energy.

The new facility is designed to house an electrolyser capacity of up to 150 MW, with a targeted commercial operation date of around 2030, aligned with the expected commissioning of Denmark's hydrogen backbone infrastructure.

The project has been selected under Germany's hydrogen auction known as AaaS 25, which is linked to the European Hydrogen Bank, providing a regulatory and commercial framework that underpins its viability and market positioning.

Infrastructure and Market Connectivity

A central feature of the project is its intended connection to the future Danish-German Hydrogen Backbone, a cross-border infrastructure network that will allow hydrogen produced in Denmark to reach industrial and mobility customers in Germany.

This connectivity is a key strategic objective of the cooperation, reflecting the growing emphasis within Europe on building integrated hydrogen supply chains that span national borders.

Under the cooperation agreement, ENGIE has reserved the marketing rights for more than 20,000 tons of renewable hydrogen per year. The hydrogen produced at the Kassø site is expected to supply industrial and mobility demand in Germany and support the decarbonisation of hard-to-abate sectors, while also contributing to building business resilience within the European Union.

The agreement establishes a framework for collaboration during the next stages of project development, covering technical studies and work related to hydrogen transport.

Strategic Rationale for Both Companies

For ENGIE, the agreement represents an expansion of its hydrogen offering to German clients. The French energy group, which operates across more than 30 countries with a workforce exceeding 90,000 employees, positions itself as a major midstreamer in both natural gas and electricity in Europe.

Henri Domenach, Managing Director of Energy Management at ENGIE, described the two companies as having strong complementarities, both geographically and across the electricity and hydrogen value chains.

"As a major midstreamer in Europe in both natural gas and electricity, ENGIE aims to support its clients in their decarbonization journey and to offer them renewable or low-carbon hydrogen at competitive prices," Domenach said.

"The Kassø project, developed by European Energy, a pioneering partner in the large-scale production of renewable hydrogen, will therefore enable ENGIE to strengthen its offering to its German clients from 2030 onwards."

For European Energy, the deal builds on its existing operational experience at the Kassø site and extends its Power-to-X ambitions into renewable hydrogen at industrial scale.

The Copenhagen-headquartered company, founded in 2004, develops, finances, constructs and operates wind and solar farms as well as large-scale Power-to-X facilities across more than 25 countries.

Rene Alcaraz Frederiksen, Executive Vice President and Head of Power-to-X at European Energy, cited the company's experience with the existing Kassø facility as a foundation for the new project.

"Through our experience with the existing Kassø facility and the production of green fuels, we believe that we are well-positioned to be able to make a great project," Frederiksen said. "With ENGIE's large expertise into connecting production and demand of renewable energy, a cooperation between ENGIE and European Energy will benefit both parties."

Broader European Hydrogen Context

The project reflects what both companies describe as the continued maturation of the European hydrogen sector, in which renewable power production, hydrogen infrastructure, and industrial and mobility demand for green hydrogen are increasingly being developed in parallel rather than sequentially.

The selection of the project under Germany's AaaS 25 hydrogen auction and its link to the European Hydrogen Bank places it within a broader European policy framework designed to stimulate investment in renewable hydrogen and build the supply chains necessary to decarbonise industries where direct electrification remains difficult or impractical.

ENGIE, which reported a turnover of USD 83.15 billion in 2025, invests an average of USD 13.88 billion per year in the energy transition and has set a net-zero carbon target for 2045.

The group is listed on the Paris and Brussels stock exchanges and is represented in major financial indices, including the CAC 40 and FTSE Euro 100, as well as sustainability indices, including the Dow Jones Sustainability Index World.

European Energy, for its part, describes itself as advancing the integration of renewable power, green hydrogen, and e-fuels to support the transition to a fossil-free energy system, with a growing portfolio of renewable energy and Power-to-X projects across its international operations.

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