Denmark increases support for the Danish Hydrogen Backbone

On 29 September 2026 the Danish government and four parties in the Folketing agreed to raise operating support for Danish Hydrogen Backbone 1 from DKK 10.9 billion to DKK 16.5 billion. The pipeline runs from Esbjerg via Veerst to the German border, and the extra DKK 5.6 billion, about EUR 750 million, will be paid between 2030 and 2059.

According to the press release from Denmark's Ministry of Climate, Energy and Utilities, the state also takes on a DKK 2.1 billion guarantee until 1 January 2028 for stranded costs, and the economic commitment required from a producer falls from 0.5 GW to 0.1 GW. The pipeline will be built if at least one project wants to use it.

That changes who funds the initial investment. The state is not buying the pipeline: it guarantees three decades of operating revenue and covers part of the stranding risk, and that guarantee is what makes the project financeable before demand exists. For a producer, the entry ticket drops to a fifth.

The next milestone is commercial. Energinet's capacity sale still carries a 0.5 GW target in December 2026, the guarantees move to 1 January 2028, and operation is expected by the end of 2030.