Hydrogen appears to be an indispensable component of the future energy system in Denmark and globally – both as energy storage and the integration of renewable energy into the entire energy system. Megavind’s latest report “Renewable Hydrogen in the Danish Energy System” presents four policy recommendations on how sustainable hydrogen can help Denmark achieve its goal of becoming independent of coal, oil and gas in 2050.
Increased electrification is a cornerstone
Direct electrification is the most economical and energy efficient way of reducing Denmark’s CO 2 emissions , and therefore also the approach that is preferable in the industries that can switch to using electricity from the sustainable sources, solar and wind.
Indirect electrification: There are industries that technologically have difficulty using electricity as a source of energy. These industries can benefit from sustainable hydrogen and derived liquid energy carriers. The maritime sector, the transport sector, and the aviation industry are among the industries where the potential for indirect green electrification is greatest.
Solar and wind electricity is today challenged by limited storage options – especially seasonal storage of 6 months or more. Sustainable hydrogen can help solve this challenge, as gasified and liquid energy carriers are much easier to store. That is, large electrolysis plants can convert excess solar and wind electricity into gasified hydrogen. This hydrogen can further be converted into liquid fuels, such as e.g. ammonia and methanol. With large industrial plants, Denmark will be able to make 100 per cent independent of fossil fuels. However, this requires political will.
The report identifies some policy recommendations that are crucial to achieving Denmark’s 2050 fossil independence goal.
- Demonstrate the use of sustainable hydrogen in the agricultural, maritime, aviation, and heavy transport sectors.
- Establish incentives that reduce CAPEX ( Capital Expenses) and OPEX ( Operating Expenses) for sustainable liquid fuels such as ammonia and methanol.
- Clear Danish and European energy strategy, which clarifies the level of ambition for the increased direct and indirect electrification in both the short and the long term.
- Support for demonstration projects that will help reduce the leveled cost of energy (LCOE) for wind energy.