The plant will use electricity produced from two existing Siemens Gamesa 3.6MW wind turbines installed near Ørsted's Avedøre biomass power station to produce 600kg of hydrogen, the Danish developer said.
Ørsted's project partners included Everfuel Europe, NEL Hydrogen, GreenHydrogen, DSV Panalpina, Hydrogen Denmark and Energinet Elsystemansvar.
The funding was provided by the Danish government's Energy Technology and Demonstration Programme (EUDP).
The hydrogen produced at the project will be used to power 20-30 buses, with some used to test in trucks and taxis.
"Renewable hydrogen could potentially form a cornerstone of Denmark's ambition to reduce greenhouse gas emissions by 70% in 2030 and of the transition to a world that runs entirely on green energy," said Ørsted's head of hydrogen, Anders Nordstrøm.
"But renewable hydrogen is currently more expensive than hydrogen produced from gas or coal. So, it's important for us to be able to demonstrate the technology and gather experience, that will make it possible to scale-up the technology and make it more efficient to compete with the fossil-based alternatives," Nordstrøm added.