Everfuel A/S announced that it signed a grant agreement with the German government under the European Hydrogen Bank Auctions-as-a-Service scheme. The production support amounts to USD 1.10 per kilogram of RFNBO hydrogen produced, corresponding to a total of USD 275.03 million.

The Herning, Denmark-based company described the signing as a significant step towards a final investment decision for the first phase of Project Frigg, its planned large-scale green hydrogen production facility dedicated to supplying RFNBO hydrogen to German industry.

Cross-Border Pipeline Capacity Reserved for 400 MW

In addition to the grant agreement, Everfuel has reserved capacity in both the Danish and German hydrogen pipelines equivalent to 400 MW of electrolyser capacity, targeting production volumes for the initial phases of Project Frigg.

Together, the grant agreement and the capacity reservations address what the company calls two central elements of the project framework: production support and access to cross-border hydrogen infrastructure.

Project Frigg is located at Revsing Energy Park in Vejen, Denmark, situated in the competitive DK1 power zone, which is projected to exceed a 90 percent renewable energy share in 2026, according to the Danish Energy Agency. The facility is designed to scale to 2 GW of electrolyser capacity as the market develops.

The development of Frigg builds on Everfuel's operational experience from its 20 MW HySynergy facility, which produces certified RFNBO hydrogen for German customers and has demonstrated cross-border supply by trailer ahead of future pipeline delivery.

Denmark Seen as Germany's Only Significant RFNBO Import Corridor by 2031

Everfuel CEO and Founder Jacob Krogsgaard said that delivering on Germany's national hydrogen ambitions will require substantial volumes of RFNBO hydrogen, and that Denmark is likely the only significant competitive RFNBO import corridor into Germany by 2031. He argued this places Danish projects in a unique position to contribute to the German market.

Krogsgaard also pointed to a supply-demand imbalance on the German side, noting that RFNBO demand in Germany is projected to exceed planned supply capacities by a factor of two or more, citing the Nationaler Wasserstoffrat and the Clean Hydrogen Monitor.

In his view, this provides a strong incentive for German industry to progress commercial dialogues and secure long-term hydrogen supply agreements in the near term.

"Signing the grant agreement and reserving pipeline capacity are important milestones for Project Frigg, bringing us closer to connecting competitive Danish green hydrogen production with industrial demand in Germany," Krogsgaard said.

He added that close coordination between the Danish and German governments, Danish hydrogen developers and German industry is now essential to align infrastructure, final capacity bookings and firm commercial agreements towards FID.

Government Frameworks and Next Steps Towards FID

Everfuel acknowledged the work of the Danish Ministry of Climate, Energy and Utilities and the German Federal Ministry for Economic Affairs and Energy in establishing the framework conditions needed to advance the market and progress Danish hydrogen projects towards investment decisions.

The company said it will continue the commercial and technical maturation of Frigg, including progressing advanced offtake discussions towards firm agreements. Everfuel and its shareholders, E.F. Holding, Swiss Life Asset Managers, Hy24, and HyVC, a joint venture between ITOCHU Corporation and Osaka Gas UK, Ltd., a subsidiary of Osaka Gas Co., Ltd., will continue to progress Project Frigg together with relevant authorities, infrastructure owners, customers and other project stakeholders.

About Everfuel

Everfuel owns and operates green hydrogen infrastructure and partners with industrial customers to connect the hydrogen value chain, supplying hydrogen to both industry and mobility applications. Its strategy focuses on developing large-scale hydrogen production capacity in Denmark to deliver green hydrogen to the European market, initially with a focus on Germany.

The company has activities in Denmark, Germany and the Netherlands, and is owned by founding investors E.F. Holding, Swiss Life Asset Managers, Hy24 and HyVC.

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