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Germany will provide up to €1.3 billion to support the completion of a green hydrogen pipeline from Esbjerg, Denmark, to Ellund, Germany, by 2030. This funding aims to bridge the price gap for green hydrogen production as Denmark can generate approximately 15 terawatt-hours by 2030.

The funding will only support producers feeding into the Danish Hydrogen Backbone 1 pipeline. The project is expected to benefit the German steel industry and power plants, offering cost-effective access to climate-neutral hydrogen.

By January 2027, at least 500 megawatts of transport capacity must be booked to proceed with the project. There are concerns about Germany's reliance on imports and the need for increased domestic hydrogen production.