Spain-Denmark Hybrid Solar and Wind Hydrogen Corridor: Costs Near EUR 2/kg by 2026 - News and Statistics

May 17, 2026

A new study suggests that combining Spain’s solar photovoltaic capacity with Denmark’s offshore wind power could help establish a competitive European green hydrogen market, with production costs near EUR 2 per kilogram. The research, published in Energy Conversion and Management and reported by pv magazine, examines how the two countries’ complementary renewable resources might underpin a hydrogen corridor.

An international research team developed a high-resolution techno-economic model to optimize complete green hydrogen value chains—including production, storage, and export—under an off-grid configuration that does not rely on external electricity imports or grid backup. The study is based on the premise that regions with the highest renewable energy potential often do not align with future hydrogen demand centers in Europe. Spain shows strong potential for solar-based hydrogen production, with yields exceeding 1.7 MWh per kilowatt per year, while Denmark benefits from offshore wind capacity factors above 50% and has plans to deploy 4 to 6 GW of electrolysis capacity by 2030.

According to the authors, Spanish photovoltaic generation peaks in summer and during daytime, while Danish offshore wind offers more stable output and stronger generation in winter. This seasonal complementarity reduces 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, optimizing generation, electrolysis, and storage capacities to minimize the levelized cost of hydrogen while meeting a fixed annual export target.

A key finding is that storage technology is the most decisive factor in final hydrogen costs, more so than local renewable resource quality. The study compared three storage options: salt caverns, pressurized tanks, and liquid organic hydrogen carrier (LOHC) systems, which store hydrogen in organic liquids at ambient temperature and pressure. LOHC systems proved the most competitive and flexible for international hydrogen corridors, particularly in regions lacking suitable geology for underground storage. Production costs using LOHC were around EUR 65 million per TWh of hydrogen—approximately EUR 2.15 per kg—in both Spain and Denmark. Salt caverns showed competitive performance at EUR 69 to 72 million per TWh (roughly EUR 2.3 per kg), while pressurized tanks were significantly more expensive, exceeding EUR 6.7 per kg in Spain.

The scientists concluded that a hybrid model combining photovoltaics with LOHC in Spain, and offshore wind with LOHC in Denmark, represents the most efficient pathway for developing European hydrogen corridors capable of supplying up to 100 TWh annually. The study also highlights the strategic importance of long-duration storage and sector coupling for reducing costs and enhancing European energy integration. The authors note that uncertainties related to capital expenditure, equipment lifespan, and storage costs can cause variations of more than 30% in the levelized cost of hydrogen, emphasizing the need for specific support policies, stable regulatory frameworks, and coordinated investments at the European level.

The researchers suggest that the combined experience of Spain and Denmark could serve as a replicable model for other international renewable hydrogen corridors in regions with complementary renewable energy profiles.

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