A 1GW green hydrogen project in the Danish port city of Esbjerg has been granted environmental approval, bringing it a step closer to reaching a final investment decision (FID).

The plant’s developer H2 Energy plans to install 50 proton exchange membrane (PEM) electrolysers supplied by US manufacturer Plug Power and start operations in the second half of 2025.

Assuming 5,000 production hours a year, H2 Energy expects to produce around 90,000 tonnes of hydrogen annually.

While H2 Energy cites the Esbjerg site’s proximity to offshore wind farms as a point in its favour, it has not clarified exactly how it will source electricity to power its green hydrogen plant, although a 400kV ground cable will be built to connect the project to a substation in Endrup.

However, according to the environmental impact report, the H2 produced at Esbjerg will not be used within the city.