The Danish Government has released a proposal for a new strategy to promote and navigate the future development of Power-to-X (PtX) projects in Denmark. The Danish PtX strategy aims at reducing CO2 emissions, balancing the Danish power system and providing export opportunities for green fuels and PtX technology.

Denmark has focused on green energy supply for more than 40 years and is leading the way to reach the 70% C02 emission reduction target by 2030. In doing so, the PtX strategy will play a crucial role in promoting green innovative technologies and the establishment of an effective framework, which will support the hydrogen infrastructure in Denmark. Specifically, the government proposes to invest DKK 1.25 billion through a PtX tender, which will facilitate the support of hydrogen production with other PtX converted products such as ammonia, methanol or e-kerosene.

“I am very pleased that Denmark has presented a new Power-to-X strategy, which sets a clear ambition to strengthen export opportunities for the Danish PtX-cluster and to attract foreign PtX-investments. With this strategy, we are strengthening – in partnership with the business sector and organisations – Denmark’s role as a frontrunner in the green transition by investing in PtX as part of the energy system of the future. Invest in Denmark has already helped attract more than a gigawatt Power-to-X projects to Denmark and I look forward to paving the way for more investments in green, Danish Power-to-X projects”, said Jeppe Kofod, Danish Minister of Foreign Affairs.

The PtX strategy focuses on four key points:

  • Supporting the cost-effective CO2 reductions and the aim of the Danish Climate Act
  • Providing the framework for a general expansion of PtX in Denmark
  • Strengthening the interaction between PtX and the energy system
  • Supporting the export potential for PtX products and technology

The four parameters are highly interconnected and play an important role in the process of framing PtX as part of the future energy system in Denmark. The strategy will leverage green solutions, which will benefit both Danish consumers and the rest of the world.

The PtX strategy will generate growth and employment along with benefitting the overall potential of the Danish export within the PtX sector. When the financial support is allocated to the production of green hydrogen, it ensures that all PtX producers are included in the tender, as all known PtX technologies involve the production of hydrogen through electrolysis. The tender will support the industrialisation and upscaling of PtX production facilities in Denmark and thus reduce the costs in connection with hydrogen production.

Denmark is already moving fast with developing PtX projects; more than 6GW PtX projects have been announced in Denmark, whereas Invest in Denmark has helped facilitate more than 1GW projects, and will continue to do so to strengthen the future role of PtX. The public-private sector’s strong commitment to renewable energy as well as Denmark’s extensive growing PtX industry are the key reasons why international businesses come to Denmark to develop PtX projects and technologies. They find excellent conditions in Denmark for developing, testing and implementing new PtX technology.