NEWS: Aabenraa secures €1.6m EIB grant to advance the Danish–German hydrogen economy

Aabenraa Municipality has entered an agreement with the European Investment Bank (EIB) for a €1.6m Advisory Services grant from the EU’s Just Transition Fund. The 24-month programme will map the emerging hydrogen ecosystem, assess infrastructure needs, and prepare a cross-border roadmap to 2035, building the early foundations for a Danish–German hydrogen valley. The initiative aims to strengthen value chains, accelerate sector integration and support long-term regional development.

Aabenraa Municipality has taken an important step in strengthening the regional hydrogen and Power-to-X landscape with the signing of a €1.6m Advisory Services agreement with the European Investment Bank (EIB). Supported by the EU’s Just Transition Fund, the grant will drive a comprehensive 24-month programme dedicated to maturing the Danish–German hydrogen economy and enhancing conditions for long-term investment and development.

Earlier this year, Aabenraa convened hydrogen stakeholders from both sides of the border to identify needs, opportunities and pathways for the region’s nascent cross-border hydrogen valley. With support from the South Denmark European Office, this collaborative process resulted in a structured programme that includes feasibility studies for infrastructure complementary to the coming Hydrogen Backbone, as well as strategic analyses covering regulation, supply chains and sector integration.

In announcing the programme, Hanne Klintøe, Head of PtX Development and initiator of the project, emphasised its significance: "We are delighted to finally be able to announce this important project that will create tangible value and direction for both implementing municipalities such as Aabenraa, but also the many ambitious developers in our shared Danish-German geography, working tirelessly to bring the hydrogen industry to fruition."

The project will deliver a complete mapping of hydrogen and PtX developers, offtakers, knowledge hubs, coordinating organisations and key municipalities and kreise. It will also examine supply chain constraints involving water, carbon, heat and renewable energy availability - critical elements for large-scale hydrogen and hydrogen-derivative production. These analyses will inform a cross-border roadmap to 2035, accompanied by socio-economic assessments exploring employment, competitiveness and regional development impacts.

A further focus lies on preparing a robust portfolio of bankable projects suitable for EIB lending and European grants. Across two phases, the programme will include up to three pre-feasibility studies and two full feasibility studies for strategically important projects. This work will underpin the development of a comprehensive Hydrogen Valley strategy, including governance models and partnership structures for long-term cooperation between Denmark and Germany. Collaboration with organisations such as WTSH in Schleswig-Holstein will play an important role throughout.

Reflecting on the broader strategic value, Klintøe added: "Launching a project like this is essentially an insurance policy. By improving conditions for our developers, we help ensure their longterm success and therefore our return on investment, including the many added benefits of PtX outlined in our recent report. With several PtX projects in pipeline and three hydrogen stations on the coming Hydrogen Backbone, we are staring opportunity in the face; green transition, jobs, economic growth. But to make it happen, we need to know exactly what to act on to pave the way from here. The EIB's Advisory Services grant will provide that analysis – as well as in-depth feasability studies, and funding and financing paths for all involved for projects, sector integration, technical water, CCUS, and coordination across the border."

As the programme begins, it marks a strategic milestone for Aabenraa and the wider Danish–German region. By establishing a clear overview of the hydrogen landscape, identifying infrastructure and regulatory needs, and preparing concrete investment pathways, the initiative will strengthen cross-border cooperation and accelerate the development of a resilient, competitive and innovation-driven hydrogen ecosystem. In doing so, it positions South Denmark and Schleswig-Holstein to play a leading role in Europe’s transition towards green fuels, advanced logistics and sustainable industry.