The EU has confirmed that it will offer up €11.5 million to co-finance electrification works on the final section of the Copenhagen-Esbjerg line.
Funding will be delivered as part of the TEN-T project, an EU initiative designed to develop a series of key transport corridors across the continent.
The project will include the installation of electrification and power supply systems along the 57 kilometre double-track line between Esbjerg and Lunderskov.
As well as the electrification work, EU funds will be used to build a new spur line to the Port of Esbjerg.
Work is due to be completed by 2015.