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The Danish Parliament (Folketing) has agreed on the terms of ownership and operation of pipelines used for transporting hydrogen from PtX (Power-to-X) plants to consumers both domestically and internationally, the Ministry of Climate, Energy and Utilities said in a press statement.

The country's state-owned companies Energinet, controller of energy infrastructure, and Evida, an energy supply company, will own the pipelines and the two companies will leverage their expertise in existing gas infrastructure.

According to the Ministry on Tuesday, the agreement is a significant milestone in Denmark's efforts to establish a PtX sector and position the nation as Europe's green power hub.

The agreement also entitles private entities to own and operate designated hydrogen pipelines, Xinhua news agency reported.

Minister of Climate, Energy and Utilities Lars Aagaard said that Denmark has ambitious plans for expanding offshore wind power, which can generate substantial amount of green electricity to produce hydrogen and green fuel.

"These renewable alternatives have the potential to replace fossil fuels in Denmark and be exported to the German industry," Aagaard said in the press statement.

The agreement follows other initiatives by the Danish government, which has already allocated 1.25 billion Danish kroner ($181 million) to initiate the production of green hydrogen in the country.

"The objective is to establish a framework that supports the rapid development of the PtX sector in Denmark," the Minister added.

"Energinet and Evida can utilise their knowledge, skills and experience gained from operating and owning the existing electricity and gas systems. They can also coordinate the deployment of hydrogen infrastructure with the necessary expansion of the electricity grid for PtX plants, ensuring synchronised and expedited progress," Aagaard said.

The government plans to present a proposal for financing the hydrogen infrastructure later this year, according to the press statement.