MorGen Energy has secured a conditional grant of up to €422.75 million to support its Njordkraft project in Esbjerg, Denmark under the European Hydrogen Bank auction backed by the EU Innovation Fund. The award is a major step toward a final investment decision (FID) for the project’s first phase, which plans 300 MW of electrolysis capacity with the potential to scale to 1 GW.
The scheme is designed to produce RFNBO-compliant renewable hydrogen for industrial customers in Germany and mainland Europe, with output targeted at around 45,500 tonnes a year. Its location gives it direct access to the developing Danish-German hydrogen backbone, the cross-border pipeline link from Esbjerg to Heidenau near Hamburg, and positions it to serve demand from steel, refining and other energy-intensive industries.
MorGen says the project is one of Europe’s most significant hydrogen developments and will benefit from competitively priced renewable electricity from the Danish grid. The award also comes as RED III obligations are being implemented across Europe, especially in Germany, increasing demand for RFNBO-compliant hydrogen and hydrogen-derived fuels among obligated sectors such as refineries and fuel suppliers.
MorGen CEO Werner Lieberherr said the selection under the European Hydrogen Bank reflects growing momentum in Europe’s energy market and the project’s strong fundamentals, including renewable power access, infrastructure connectivity and proximity to industrial demand. The company has already invested heavily in the project through land acquisition, permitting, FEED work, grid connection and financing preparation.
As part of the Trafigura Group, MorGen also brings experience in power, gas and carbon trading, which it says will help commercialise the project and related infrastructure as Europe’s hydrogen market moves toward first-wave deployment.
