Denmark has awarded a total of DKK 1.25 billion ($155 million) to six green hydrogen projects in its first tender for support for Power to X (PtX) projects. The projects will be located in Holstebro, Esbjerg, Padborg, Rybjerg, Rødekro, and Fredericia.
The largest amount of aid goes to European Energy’s plant in Padborg, which will be awarded more than DKK 910 million. Companies competed to see who could offer the lowest price per unit of energy produced.
The tender was opened to applicants in April and received applications for more than four billion kroner, even though the pool contains only 1.25 billion kroner. This demonstrates the strong market interest in PtX technology.
Climate Minister Lars Aagaard (M) said, “We are investing heavily in a technology that converts green power into hydrogen and into fuels that can get aircraft on the wings and poured into the tank of a ship.”
PtX is a method that can produce green fuels by using power from renewable energy sources such as solar cells and wind turbines. The production of green fuels from PtX plants is crucial for the decarbonization of sectors such as shipping and aviation.
In 2022, the Danish Parliament adopted an agreement that PtX plants will be built in Denmark with a capacity of 4-6 GW in 2030. This tender has supported six projects that will construct a total capacity of 280 MW.
Kristian Jensen, CEO of Green Power Denmark, said, “The first tender must not be a lone swallow.” He continued, “The great interest in the tender testifies to the fact that there is a need for more tenders to get the many hydrogen and PtX projects that are planned up and running. New tenders are a necessity to meet our goal of 4-6 GW of electrolysis by 2030.”
The Danish government’s investment in green hydrogen is a significant step towards achieving its ambitious climate goals. The six projects awarded support in this tender will play a vital role in developing Denmark’s PtX industry and helping to decarbonize the global economy.