From pv magazine Spain
An international research team has assessed a joint strategy between Spain and Denmark to develop cost-competitive European renewable hydrogen corridors, leveraging the seasonal complementarity between Spanish photovoltaic generation and Danish offshore wind power. To this end, they developed a high-resolution techno-economic model to optimize full green hydrogen value chains – including production, storage, and export – under an “off-grid” configuration, without reliance on external electricity imports or grid backup.
The research is based on a key assumption for Europe’s energy transition: a significant mismatch exists between regions with the highest renewable potential and future hydrogen demand centres. In this context, Spain emerges as a leading candidate for solar PV-based hydrogen production, with yields exceeding 1.7 MWh/kW per year, while Denmark stands out for offshore wind capacity factors above 50% and plans to deploy 4–6 GW of electrolysis capacity by 2030.
The study shows how the two geographies could complement rather than compete with each other. Spanish PV generation peaks in summer and during daytime hours, while Danish offshore wind provides more stable output and stronger winter generation. According to the authors, this complementarity reduces seasonal variability in hydrogen production and helps stabilize export costs to other European markets.
The researchers used an hourly model based on six years of meteorological and renewable energy data, combined with an optimisation of generation, electrolysis, and storage capacities, to identify system configurations that minimise the levelised cost of hydrogen (LCOH) while meeting a fixed annual export target.
A key finding is that storage technology, rather than local renewable resource quality, is the most decisive factor in final hydrogen costs. The study compares three options: salt caverns, pressurised tanks, and liquid organic hydrogen carrier (LOHC) systems, which store and transport hydrogen in organic liquids at ambient temperature and pressure.
LOHC systems emerge as the most competitive and flexible option for international hydrogen corridors, particularly in regions without suitable geology for underground storage. The results indicate production costs of around €65 million ($75.5 million) per TWh of hydrogen (approximately €2.15/kg) in both Spain and Denmark. Salt caverns also show competitive performance, at €69–72 million per TWh (around €2.3/kg), while pressurised tanks are significantly more expensive, exceeding €6.7/kg in Spain.
The scientists concluded that a hybrid model based on photovoltaics and LOHC in Spain, combined with offshore wind and LOHC in Denmark, represents the most efficient pathway for developing European hydrogen corridors capable of supplying up to 100 TWh annually.
In addition to the economic results, the study highlights the strategic importance of long-duration storage and sector coupling for reducing costs and enhancing European energy integration. The authors underscore that uncertainties associated with Capex, equipment lifespan, and storage costs can lead to variations exceeding 30% in the LCOH; consequently, they deem it essential to implement specific support policies, stable regulatory frameworks, and coordinated investments at the European level.
The researchers note that the combined experience of Spain and Denmark could serve as a replicable model for other international renewable hydrogen corridors based in regions with complementary renewable energy profiles.
Their are findings are available in “Complementary Spanish photovoltaic and Danish offshore wind pathways to cost-competitive renewable hydrogen,” published in Energy Conversion and Management.
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