Denmark

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GH2 Country Portal – Denmark

Green hydrogen vision

With Denmark’s large wind resources and the massive expansion of offshore wind capacity conditions, the country is well-placed to become a leading green hydrogen producer in Europe. The government targets to scale up production and use of green hydrogen in fossil-fuel-reliant industries like shipping, aviation and heavy transport. Furthermore, the government aims to promote exports of green hydrogen and become a global player in promoting technologies for the conversion of surplus generated power into hydrogen via electrolysis: Power-to-X. (National Hydrogen Power-to-X Strategy, 2021) 

According to the Ministry for Climate, Energy and Utilities, the national strategy will not only benefit the climate, but promote business and green energy security in Denmark. The ultimate goal is for green hydrogen to replace fossil fuels completely. 

“We have had an economy which has been based primarily on oil but in the future, it will be based on hydrogen” - Dan Jørgensen, Minister for Climate, Energy and Utilities 

National Strategy

The Danish government, through the Ministry of Climate, Energy, and Utilities, announced the Power-to-X strategy (PtX) in December 2021. With this strategy, the Danish Government is taking its first major holistic step to create the necessary framework conditions for Power-to-X in Denmark.  

 

The strategy has the following four objectives: 

  1. Power-to-X must contribute to reducing carbon emissions as set out in the Danish Climate Act.  

  2. The regulatory framework and infrastructure must be in place to maximise Denmark’s comparative advantages and for the Power-to-X industry to operate on market terms in the long run. 

  3. The interaction between Power-to-X and the Danish energy system must be improved; and Denmark must be able to export Power-to-X products and technologies. 

  4. The government must help realise the export potential of  Power-to-X products and technology. 

 

Furthermore, the strategy is the government’s first step towards establishing a national hydrogen infrastructure that can promote exports to European markets. 

National Strategy

Capacity targets

  • The national strategy sets out an electrolyser capacity target of between 4-6 GW by 2030 

Impact Targets

  • Through the national Power-to-X strategy (2021), the government aims to curb CO2 emissions between 2,5 – 4,0 million tonnes by 2030. 

Policy Spotlight

  • Utilisation of surplus heat and reduction of the electricity fees: Power-to-X process consumes a lot of electricity and produces a lot of surplus heat. The government has announced measures to promote the utilisation of surplus heat in the local district heating grid, which is expected to enter into force in 2022. Copenhagen Infrastructure Partners expects that the surplus heat from the production of green ammonia and marine fuels based on 1 GW of electrolysis can supply up to 15,000 average homes in Esbjerg and Varde with green district heating1. This usage of surplus heat under favourable conditions reduces the overall cost of hydrogen production by 5-10 percent.  

  • International promotion of Power-to-X: Denmark has been the driving force behind the preparation of the Shipping Mission for climate-neutral shipping, which was selected as one of the missions of the new Mission Innovation 2.0. The Government launched the Zero Emission Shipping Mission, a collaboration between Denmark, the USA, and Norway. 

  • Green Hydrogen Hub, Denmark: It is a European flagship project deploying electrolysis hydrogen production and long-duration underground storage in Northern Jutland, Denmark, where large caverns suitable for storage of hydrogen are created in salt deposits. Their hydrogen capacity target is 400GWh by 2030. It is in the European projects of common interest. 

Financing

  • In March 2022, Denmark has announced a €161 million package towards the development of subsidy scheme to support the Power-to-X projects.  

  • The Danish government has also funded Danish value chain projects for hydrogen (IPCEI) with €115 million, allocated roughly €54 million to the development of Power-to-X via the EUDP and Danish Energy Agency’s energy storage funding pool. 

  • €7.5 million in 2022-2026 has been earmarked for a hydrogen task force responsible for providing guidance to project developers and authorities. 

Government green hydrogen lead

Comment

The Danish government and Danish companies like the majority state-owned are already progressing fast with both on and offshore renewable energy production and green hydrogen projects.