With a view to accelerating the development of green fuels, the Danish Government has reached a broad agreement with the parties of the Danish Parliament on green hydrogen, including a government tender for DKK 1.25 billion (≈ EUR 168 million). The aim is to develop green transportation fuels for aviation, shipping, and heavy-duty transport in Denmark and abroad.
The agreement, which was announced on March 15, 2022, has been reached with the Danish Liberal Party, Socialist People’s Party, Social Liberal Party, Red-Green Alliance, Conservative Party, Danish People’s Party, Liberal Alliance, and Alternative following geopolitical developments in Europe, where energy independence and accelerating the development of green alternatives have become more of a priority than ever before.
This agreement benefits the climate, Danish businesses, and Denmark’s security of supply of green energy. I am thrilled that we have achieved a broad political consensus to set the bar so high that Denmark can play more than a national role in the development and production of new fuels. Europe is intensely searching for alternatives to fossil fuels, and we are in a hurry not only to become green, but also to become more independent from Russian fossil energy, said Dan Jørgensen, Minister for Climate, Energy and Utilities.
The agreement sets out an ambition to build up an electrolysis capacity of 4 – 6 GW in Denmark by 2030. The Danish target of up to 6 GW is among the top three most ambitious national targets in Europe.
High ambitions for green fuels are essential to phase out fossil energy, reduce climate impact, encourage green growth and loosen Russia’s grip on Europe’s energy supply.
Hydrogen requires lots of green electricity
The agreement consists of a subsidy scheme of DKK 1.25 billion (≈ EUR 168 million) in the form of a state tender for hydrogen production and better framework conditions for producers. It also builds upon a number of other business promotion measures and funding pools.
This means that in total, the Danish Government has prioritized at least DKK 3 billion (≈ EUR 402.5 million) towards the development and maturation of green hydrogen production since 2019.
The Government will present a plan for expanding onshore and offshore renewable energy generation in Denmark which will ensure that the country can become a net exporter of green energy – also in light of the new ambitious hydrogen target.
A target of 4 – 6 GW of electrolysis plants can result in a 2.5 – 4.0 million tonne reduction in carbon dioxide (CO2) emissions by 2030, including up to 2 million tonnes in the Danish climate account.
Danish companies are ready to develop and produce the green fuels and technologies of the future. This agreement marks the start of a new green commercial and export saga, which is now also about achieving independence from Russian energy sources as soon as possible. This can create green jobs and accelerate the green transition of companies in Denmark and abroad, said Simon Kollerup, Minister for Industry, Business, and Financial Affairs.
