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Denmark and Germany have signed here an agreement to construct a land-based hydrogen pipeline transporting hydrogen from Denmark to Germany by 2028.

Danish Minister for Climate, Energy and Utilities, Lars Aagaard, and German Minister for Economic Affairs and Climate Action, Vice- Chancellor Robert Habeck, signed the pact about the pipeline on Friday, which is expected to transport hydrogen from the coast of Jutland in western Denmark to northern Germany, Xinhua news agency reported.

After their meeting, Aagaard told a press conference: "We have the same interests in so many areas. Today we are taking it a step further."

"Green hydrogen is crucial to making our industry climate-neutral," said Habeck.

"In this agreement, we outline in particular areas of cooperation on hydrogen, including business support."

Germany currently has a large and growing hydrogen demand, while Denmark, with its current and future wind power resources, has the potential to be a major exporter, a press statement from the Danish Ministry for Climate, Energy and Utilities said.

The agreement prioritises market-driven hydrogen infrastructure deployment and integration of the two countries' energy systems, the press statement added.