Green Hydrogen Takes Off In Denmark

• Denmark has announced its aim to target up to 6 GW of electrolyzer capacity by 2030
• It will be powered by wind and solar power whose development plan is to be released by the government
• The country will launch a single tender to support hydrogen production to award DKK 1.25 billion in operating subsidies for 20 years

Denmark has decided to add between 4 GW to 6 GW worth of electrolysis capacity by 2030 to generate green hydrogen with wind and solar energy supply, and plans to offer subsidies worth DKK 1.25 billion ($185 million) for hydrogen production through a single tender.

Subsidies will be granted as operating support for 10 years. Green hydrogen thus produced will lead to carbon emission reduction of 2.5 to 4.0 million tons by 2030, according to government estimates. This clean fuel can be used to decarbonize heavy industry and transport sectors.

In mid 2021, the European Union (EU) as a bloc announced a target of 6 GW of renewable hydrogen electrolyzer capacity to produce 1 million tons of renewable hydrogen by 2024, to be scaled up to 40 GW by 2030 with capacity to generate 10 million tons (see European Commission Proposes 40% RE In Energy Mix By 2030).

Denmark will present a plan for offshore and onshore renewable energy development which will ensure the country can be a net exporter of green energy. The government believes it is the 1^st step towards the establishment of a Danish hydrogen infrastructure that can promote exports to countries like Germany.

The Danish Ministry of Climate, Energy and Supply said an agreement to this effect has been reached with various political parties in the country. In the 'shadow of the serious situation in Europe', energy independence and acceleration of green alternatives are more relevant than ever, it added.

"With the agreement, we strengthen the climate, Danish industry and green security of supply," said Energy Minister Dan Jørgensen. "Europe is intensely looking for alternatives to fossil energy and we are busy becoming green and by becoming more independent of Russian black energy."

Green hydrogen production is part of a broad agreement on Power-to-X (PtX). It has allocated DKK 57 million ($8.43 million) between 2022 and 2026 to a PtX task force which will guide project developers and authorities.

This 'green unity' agreement is reflecting in rest of Europe as well where the Russian invasion of Ukraine has made ramping up renewables and self-generated clean fuels as an urgent necessity (see EU's REPowerEU To Reduce Russia Reliance Short On Solar).

Recently, Czechia launched a tender offering funding for solar PV projects to reduce reliance on Russian fuels (see Funding Call For Solar In Czech Republic). For the same reasons, the Austrian state of Burgenland has also pledged a 3.2 GW solar PV aim for 2030 (see Burgenland Aims For 3.2 GW Solar).