Denmark and Germany have inaugurated the first segment of a hydrogen pipeline network, the 'hydrogen superhighway,' connecting Esbjerg in western Denmark to Husum in northern Germany. The project, operated by Danish gas transmission firm Energinet and its German counterpart Gasunie Deutschland, is intended to transport renewable hydrogen from Danish wind farms to German industrial users. Initial capacity is expected to reach 50,000 tonnes per year, with plans to expand as production and demand scale up.
Supply remains the primary bottleneck: while Denmark has abundant offshore wind potential, current electrolysis capacity is limited to a few megawatts. The pipeline aims to bridge this gap by creating a dedicated corridor for green hydrogen, largely produced via electrolysis using wind power. Analysts estimate that Europe will need over 20 million tonnes of renewable hydrogen annually by 2030 to meet climate targets, but production today lags far behind those aspirations.
Infrastructure investment has been a sticking point. The Danish-German project received approximately €50 million in EU funding under the Important Projects of Common European Interest (IPCEI) framework, with total costs estimated at several hundred million euros. Construction is phased, with the initial link expected to be operational by 2028. The pipeline will tie into Germany's planned hydrogen core network, a 9,700-kilometer system slated for completion by 2032.
The geopolitical calculus is shifting. Germany, facing the loss of cheap Russian gas, is pivoting toward hydrogen as a substitute for heavy industry. Denmark sees itself as a supplier akin to Norway with natural gas. Yet Europe remains dependent on imported hydrogen from North Africa and the Middle East, raising energy security questions. The superhighway is a test case for whether domestic production can compete with cheaper imports.
Critics argue that hydrogen's high cost—currently three to four times that of natural gas per unit of energy—will limit adoption to hard-to-abate sectors like steel and chemicals, leaving the broader economy reliant on direct electrification. Without a carbon price that reflects true environmental costs, the hydrogen economy may remain a niche solution rather than a transformative one.