The European Commission has provided a grant of €645m ($755.1m) for the Bornholm renewable energy cluster in the Baltic Sea.

The hybrid offshore project, led by Denmark’s Energinet and Germany’s 50Hertz, will link a 3GW offshore wind farm in the Baltic Sea to both the Danish and German power grids, providing up to 2GW of electricity to Germany and 1.2GW to Denmark starting in the 2030s, helping to power millions of homes and businesses.

The funds were granted under the EU’s Connecting Europe Facility (CEF). It will be used to fund the construction of two new converter stations, one on Bornholm and one in Zealand, and the installation of an extensive submarine cable system of around 200 km, complemented by a 17-kilometre onshore connection between Zealand and Bornholm.

“This project is a blueprint for future offshore power development in the EU. Not only will it help integrate renewable energy and decarbonise our system. Crucially, it will boost the competitiveness of the sector while providing cleaner and cheaper energy to millions of European consumers across borders,” said Dan Jørgensen, EU Commissioner for Energy and Housing.