Denmark has taken a significant step towards achieving its climate goals by implementing a new executive order that allows for the issuance of guarantees of origin for hydrogen.
Effective from 1 July 2023, this order enables Power-to-X (PtX) actors to market and trade in green hydrogen, ensuring transparency and accountability in the renewable energy sector.
Previously, guarantees of origin were only available for electricity, gas, and heat, limiting the ability of energy companies to demonstrate their involvement in green energy. However, with the inclusion of hydrogen, a crucial component in the PtX process, it becomes possible to certify the production of hydrogen using renewable energy sources.
This development opens up a range of opportunities for PtX players to emphasize their supply of green hydrogen, while companies and consumers can now proudly declare their usage of this sustainable energy source. By allowing guarantees of origin for hydrogen, Denmark aims to accelerate the transition towards a green society and promote indirect electrification through PtX technology.
PtX technology plays a vital role in enabling the production of fuels and chemicals that can replace fossil-based products in hard-to-abate sectors like shipping, aviation, agriculture, parts of industry, and heavy road transport. These sectors have been challenging to decarbonize fully, making PtX a critical solution for achieving Denmark’s long-term climate neutrality goal by 2050.
The Danish Energy Agency emphasizes that the key to driving the PtX process forward lies in ensuring that the hydrogen used in these processes is generated from renewable energy sources. The introduction of guarantees of origin for hydrogen provides the necessary verification, instilling confidence among stakeholders and fostering the widespread adoption of green hydrogen.
By facilitating the production, trade, and usage of green hydrogen, Denmark sets an example for other countries striving to create sustainable and decarbonized economies. The implementation of this executive order not only aligns with Denmark’s ambitious climate targets but also strengthens its position as a leader in renewable energy innovation.
The potential impact of this new order extends beyond Denmark’s borders, as the global demand for clean energy solutions continues to rise. By establishing a robust framework for green hydrogen certification, Denmark contributes to the international efforts in combating climate change and transitioning to a low-carbon future.
