Denmark and Germany have agreed to set up the planned energy hub of the island of Bornholm in the Danish part of the Baltic Sea as part of larger efforts to increase renewable energy production and reduce dependence on fossil fuel.

The move comes after the Danish Minister for Climate, Energy, and Utilities Dan Jørgensen and German Minister for Economic Affairs and Climate Action Robert Habeck gave their approval to connect the project to the respective countries.

Bornholm Energy Island project will involve setting up an energy hub on the island by connecting offshore wind turbines in the Baltic Sea and building an on-land plant.

The planned capacity of the hub was also expanded from 2GW to 3GW, enough to power 3.3 million Danish or 4.5 million German households.

It is expected to be established in 2030.

The project will be connected to Germany via a 470km long underwater cable to send renewable power directly to the German electricity grid. A new substation will be built on Bornholm to connect the two halves of the interconnector.

Minister Habeck said: “The cross-border energy cooperation project with Denmark is a flagship project. The green power from ‘Bornholm Energy Island’ will supplement national power generation and reduce our dependence on fossil energy imports.

“With such projects among European partners we achieve two key goals at the same time: European energy security and climate neutrality.”

The Energy Island of Bornholm will be implemented as a joint project between Denmark and Germany.

Both the countries will seek to distribute the cost and benefits equally, as well as work together on potential additional connections to the island in future.

Minister Jørgensen said: “The Energy Island is truly a landmark in energy history and comes at a time where international cooperation is more urgent than ever before.”

Earlier this month, ALH Group agreed to acquire a 49.9% stake in a 597MW solar portfolio in Germany.