A recent study conducted by the Fraunhofer Institute for Energy Economics and Energy System Technology (IEE) in Germany has examined the economic implications of introducing offshore hydrogen production to the European energy system, particularly focusing on the German context. The study assessed the effects of establishing offshore hydrogen production on two energy islands connected with 10 GW of offshore wind each, compared to a scenario where all electricity from offshore wind farms is transmitted to the mainland without restrictions. The findings indicate that Germany stands to save approximately 4.3 billion euros annually by implementing offshore hydrogen production on the energy islands, primarily due to reduced grid infrastructure costs and increased utilization of HVDC cables. It was concluded that offshore hydrogen production is more efficient than onshore production, as proximity to renewable energy sources minimizes energy loss and reduces the need for extensive electricity transportation. The study, commissioned by Copenhagen Energy Islands ApS, evaluated two scenarios: one with a hydrogen pipeline connection only and the other with a limited grid connection in addition to the hydrogen pipeline. The latter scenario demonstrated substantial positive effects, allowing for flexible utilization of wind-generated energy for hydrogen production or direct transmission to the mainland. This approach enhances system flexibility and efficiency, optimizing energy usage based on market conditions. Overall, the research highlights the significant economic benefits and efficiency gains associated with offshore hydrogen production connected to the grid in the German energy system.