Everfuel plans to build Holstebro green hydrogen hub

Danish green hydrogen fuel provider Everfuel plans to build a hydrogen hub in Holstebro to support regional energy transition and accelerate the scale-up of green hydrogen as a zero-emission fuel.

Everfuel says it will develop the hub in two phases in collaboration with partners, with the aim of establishing a local supply of clean energy.

“The hub concept represents a novel approach to scaling green hydrogen. It offers a strong value proposition for industry, the transport sector, and municipalities, which is evident in the partner set up we can announce today,” says Jacob Krogsgaard, CEO at Everfuel.

The hub is to enable a significant reduction in the municipality’s CO2 emissions by feeding carbon-free hydrogen into a large share of the municipality’s activities. Today, Holstebro is the Danish municipality with the nation’s second highest onshore wind and solar power.

“By connecting several partners to make a hydrogen hub, we assist the municipality in its energy transition, we showcase just how many industries can benefit from a PtX facility to ensure an independent and green supply of fuel, and last but not least, we create a good business case,” Krogsgaard continues.

In phase one, the hub-partners will explore the production of e-methane and the use of hydrogen in industrial gas burners to produce e-methane at local biogas facilities and start testing using hydrogen in the current natural gas pipelines. Phase one is expected to be commissioned in 2023.  

In phase two, Everfuel intends to build a 100-megawatt electrolyser, a hydrogen terminal, a distribution centre, and a hydrogen refueling station. The location has already been secured for the electrolysis facility and the development is planned to commence in 2025. The green hydrogen produced in the second phase will phase out fossil fuels by replacing natural gas in selected industrial processes.

“This is a pivotal project and a strategically important contribution to the energy transition which shows just how far we can get when local businesses, utility companies and municipalities collaborate,” says H.C. Østerby, the mayor of Holstebro Municipality.

One major industrial partner and off-taker of green hydrogen is the diary company, Arla. The company will seek to replace natural gas in their processes with hydrogen and thereby significantly lower their CO2 emissions.

The realisation of the second phase depends, among other things, on the construction of renewable energy assets close to the PtX facility and a stable power supply to ensure access to sustainable energy for hydrogen production.