Denmark – To accelerate development of green fuels, government entered into an agreement on Power-to-X, hydrogen production, including a tender of 1.25B.
In order to speed up the development of green fuels, the government has entered into a broad agreement on Power-to-X, including a state tender of DKK 1.25 billion. The goal is to create green fuel for aircraft, ships, trucks both at home and abroad.
The agreement has been concluded with the Liberal Party, Socialist People’s Party, Radical Liberals, Unity List, Conservative People’s Party, Danish People’s Party, Liberal Alliance and Alternative in the shadow of the serious situation in Europe, where energy independence and acceleration of green alternatives are more topical than ever.
Dan Jørgensen, Minister for Climate, Energy and Utilities:
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With the agreement, we strengthen the climate, danish industry and the green security of supply.
“I am very pleased that we have broad political agreement to set the target so high that Denmark can play more than a national role in the development and production of new fuels. Europe is on the hunt for alternatives to fossil energy, and we are busy. Both to become green and to become more independent of Russian black energy”.
With the agreement, Denmark will aim to build an electrolysis capacity of 4 – 6 GW by 2030. With a target of up to 6 GW, Denmark is in the top 3 among european countries.
High ambitions for green fuels are essential to phase out fossil energy, reduce climate pressures, support green growth and loosen Russia’s grip on Europe’s energy supply.
The agreement consists of a grant scheme of DKK 1.25 billion in the form of a state tender for hydrogen production, better framework conditions for producers and based on a number of business promotion measures and pools. This means that the government has prioritised at least DKK 3 billion for PtX since 2019.
Simon Kollerup, Minister for Business, said:
Danish companies are ready to develop and produce the green fuels and green technologies of the future.
“The agreement kicks off a new green business and export adventure, which is now also about becoming independent of Russian energy sources as soon as possible. This can create green jobs and accelerate the green transition of companies both at home and abroad”.
Anne Paulin, Climate, Energy and Supply Spokesperson for the Social Democrats, said:
With the new agreement, we remove the known barriers to large-scale PtX, and instead pave the way for the production of new green fuels and a better and more flexible use of our energy system.
Carsten Kissmeyer, Energy Spokesman and Supply Spokesman for the Liberal Party, said:
In the Liberal Party, we are pleased that with the agreement we contribute to spreading the production and use of Power-to-X in Denmark.
“New green fuels are central to the green conversion of heavy industry and transport, and they have a great export potential that Denmark, as a green pioneer and renewable energy producer, must exploit.”
“For the Liberal Party, it has been crucial that the supply is launched as soon as possible – both to reduce our CO2 emissions, to give Danish PtX producers a competitive advantage and to develop alternatives to the CO2-emitting fuels that are currently putting pressure on the Danes’ economy”.
Signe Munk, Climate, Energy and Supply Spokesperson for SF, said:
Now we are setting a clear direction for how we really make Denmark a PTX country.
“For SF, it is important that the strategy clearly shows that the production of green power, electrification and power-to-x goes hand in hand in the green transition of Denmark and Europe”.
Rasmus Helveg Petersen, Climate Energy and Supply Spokesman for the Radical Liberal Party, said:
Finally, we can begin the next chapter in Denmark’s green transition.
“But if we are to succeed, we must in future dare to make faster political decisions, and that is why we in the Radical Liberal Party are also very pleased that the pool is being translated into a tender. The terrible crisis in Ukraine has taught us the need for green unity.”
“It is therefore an important decision in principle that all the parties to the agreement now support a vision for Denmark, where we are a net exporter of green energy. With good wind resources in the North Sea, it is our damn duty to contribute everything we can to a green and unified Europe”.
Søren Egge Rasmussen, Climate Energy and Supply Spokesman for the Unity List:
The Unity List hopes that the future green hydrogen production will be well integrated into the overall energy system.
“We have fought for energy waste from new hydrogen plants to be exploited in our district heating and for state companies to own hydrogen pipelines.”
“The next big task will be to ensure a rapid and significant expansion of renewable energy, so that there is enough power for electrification of society, green hydrogen and enough energy that can quickly replace the fossil gas”.
Mona Juul from the Conservative People’s Party.
In the Conservative People’s Party, we welcome the agreement.
“We have long sought action in relation to Power-to-X and a plan for the expansion of RENEWABLE, both of which are essential for the green transition. We must replace fossil fuels and instead boost the development of green fuels, electrification and hydrogen.”
“This is how we can much better transform, store and exploit Denmark’s green potential, which will both benefit the climate, but can also become a green Danish export adventure.”
“We have worked to raise ambitions, increase the pace of genuine european competition, and to have as much climate impact for money as possible”.
RenĂ© Christensen, Climate Energy and supply spokesman for the Danish People’s Party, said:
The Danish People’s Party sees this agreement as an important part of the road towards a green direct electrified and indirect electrification of Danish society, and this agreement must also contribute to the future free of Russian gas.
“PTX can contribute to a flexible energy system to ensure security of supply. PTX can replace fossil products in shipping, aviation, agriculture and the fossil products of heavy road transport, as well as giving Denmark new green business and export opportunities.”
Franciska Rosenkilde, Party Leader of the Alternative.
Despite the unfortunate war in Ukraine, the climate crisis still needs our attention.
“The crisis is so massive that we must do everything we can to reduce our CO2 emissions. Therefore, the Alternative is also happy to be part of an agreement that kicks off the development of PtX.”
Power-to-X requires plenty of green power
The government will present a plan for renewable energy development on land and sea in Denmark, ensuring that Denmark can be a net exporter of green energy – also in light of the new ambitious PtX target. Thanks for staying up to date with Hydrogen Central.
A target of 4 – 6 GW electrolysis plants can create reductions of 2.5 – 4.0 million tons of CO2 2030, including up to 2 million tonnes in the danish accounts.
Facts:
The agreement shall consist, inter alia, of:
- A total tender of DKK 1.25 billion, which is granted as operating aid for 10 years.
- Better opportunity to carry power lines directly from wind and solar parks to PtX plants.
- Possibility of lower tariffs for large electricity consumers such as PtX manufacturers.
- DKK 57 million in 2022-2026 for a PtX task force that will, among other things, guide project developers and authorities
- First step towards the establishment of a Danish hydrogen infrastructure that can promote exports to e.g. Germany.
The government presented its proposal on the green fuels of the future last December, and has now made an agreement with the conciliation parties behind the Climate Agreement for Energy and Industry etc. from 22 June 2020.
Broad billion-dollar deal boosts new green fuels, March 15, 2022
