The artificially constructed island will be built 80km from shore off the Jutland peninsula, and will feature a harbour as well as act as an offshore power hub for around 200 wind turbines surrounding the island, the government has confirmed.
The Danish government believes that once fully operational, the hub will be able to distribute electricity to more than 10 million consumers in countries bordering the North Sea.
In a statement, the Danish minister for climate, Dan Jørgensen, said the agreement marked a “truly great moment” for his country and for the global green transition across the continent.
He added: “The energy hub in the North Sea will be the largest construction project in Danish history. It will make a big contribution to the realisation of the enormous potential for European offshore wind, and I am excited for our future collaboration with other European countries.”
Last year, the Danish government gave the green light for the 3GW energy island in the North Sea, as well as a 2GW hub at Bornholm in the Baltic Sea, as part of its climate plan.
The majority of the North Sea island will be owned by the state to “strengthen the integration of Europe’s power grids” while increasing renewable electricity production, according to the Danish energy and climate ministry.
The island will be at least 120,000 square metres and a tender for private partners will be opened soon, the government confirmed today.
In the longer-term the government believes the two hubs' combined capacity can be doubled to 12GW in total.
Last year, Denmark reached a deal on the future of fossil extraction in the North Sea, leading to the cancellation of the ongoing current licensing round and all future rounds to extract oil and gas.