Denmark has taken a significant step towards a greener future with the successful conclusion of its first-ever tender for Power to X (PtX) projects. The Energy Agency and the Ministry of Climate, Energy, and Utilities jointly announced the allocation of a substantial sum of 1.25 billion Danish kroner (£146.5M) to six projects aimed at producing green hydrogen.
Danish Minister of Climate, Lars Aagaard, expressed enthusiasm for the investment, highlighting the pivotal role of PtX technology in transforming green electricity into hydrogen and fuels applicable in aviation and maritime industries.
“We are investing massively in a technology that converts green electricity into hydrogen and fuels that can power planes and fill the tanks of ships,” stated Minister Aagaard.
The tender, open to applicants since April, attracted overwhelming interest, with applications totaling over 4 bn kroner despite the fund’s cap at 1.25 bn kroner. Lars Aagaard noted that the robust market interest indicates a strong demand for support in establishing PtX facilities.
Power to X (PtX) is a transformative method capable of producing green fuels by harnessing renewable energy sources such as solar panels and wind turbines. The production of green fuels from PtX facilities is crucial for the transition of sectors like shipping and aviation towards sustainable practices.
Denmark’s commitment to PtX is further evident in the 2022 parliamentary decision to construct PtX facilities in the country with a capacity of 4-6 gigawatts by 2030. However, the recently concluded tender has granted support to six projects with a combined capacity of 280 megawatts, emphasizing the need for more significant efforts to achieve the 2030 goal.
“The first tender must not be a lone effort,” emphasized Kristian Jensen, the director of Green Power Denmark. Jensen stressed the necessity of additional tenders to facilitate the numerous hydrogen and PtX projects in the pipeline, stating, “New tenders are a necessity to fulfill our goals of 4-6 gigawatts of electrolysis by 2030.”
The six supported projects are distributed among four companies: Plug Power, European Energy, Electrochea, and HyproDenmark. These projects will be located in Holstebro, Esbjerg, Padborg, Rybjerg, Rødekro, and Fredericia. Notably, European Energy’s Padborg facility secured the largest support, receiving over 910 million kroner. The companies engaged in healthy competition to provide the lowest cost per unit of produced energy.
The successful PtX tender marks a crucial milestone in Denmark’s ambitious green energy transition.
See also
Hydrogen Set to Profit Denmark
Denmark climate program finds nation is getting further from not closer to 2025 climate goal
Renewable Energy is an opportunity for Denmark, the World
Denmark’s energy technology exports increase
Danish Hydrogen Breakthrough
What is Power-to-X (PtX)?
Source
Seks projekter får 1,25 milliarder kroner til at lave grøn brint [Six projects get 1.25 billion kroner for producing green hydrogen], ritzau via Politiken, 2023-10-27
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