Everfuel launches plan for Holstebro hydrogen hub

Everfuel A/S plans to build a hydrogen hub in Holstebro, Denmark, to support regional energy transition and accelerate the scale-up of green hydrogen as a zero-emission fuel for industry and mobility.

The hub will be developed in two phases in close collaboration with industry and mobility partners to establish safe, reliable and efficient local supply of clean energy.

Everfuel, the local municipality and the other hub partners will work toward a greener Holstebro city by exploring the potential for using green hydrogen in industrial processes and in mobility. By realising all three phases, the hub will significantly reduce the municipality’s CO2 emissions by feeding carbon-free hydrogen into a large share of the municipality’s activities.

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 MW electrolyser, a hydrogen terminal, a distribution centre and a hydrogen refuelling station for both heavy-duty and passenger vehicles. 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. Excess heating from the hydrogen production facility is planned to be distributed to the local district heating operator, MEC (Maabjerg Energy Center), owned by Vestforsyning and Struer Energi.

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.

One major industrial partner and off-taker of the 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.

Jacob Krogsgaard, CEO at Everfuel, said, “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.”

Pernille Bloch, Chairman at MEC, said, “The excess heat provides additional green energy for the district heating, and the PtX process becomes more efficient. We are also looking into other synergies, for instance, by adding hydrogen to a biogas facility which could potentially increase production.”

H.C. Østerby, the mayor of Holstebro Municipality, said, “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.”

David Boulanger, Executive Vice President & CSCO at Arla Foods, said, “Carbon-free hydrogen will be a key enabler to support the green transition, and we look forward to collaborating with Everfuel on the possibilities for using it as a renewable energy source on our production sites.”