Denmark has launched a €161 million subsidy scheme aiming to support the Power-to-X projects in order to achieve the goal of reaching between 4 and 6 GW of electrolysis capacity by 2030.
Denmark launched the strategy for the development of the Power-to-X-technology and capacity in December 2021, with the goal to push for the production and use of green hydrogen in hard-to-abate sectors like shipping.
The strategy also aims to promote energy export in the form of green hydrogen and e-fuels. The Power-to-X strategy includes four objectives.
- Power-to-X must be able to contribute to the realisation of the objectives in the Danish Climate Act.
- The regulatory framework and infrastructure must be in place to allow Denmark’s strengths to be used and for the Power-to-X industry to operate on market terms in the long run.
- The interaction between Power-to-X and the Danish energy system must be improved
- Denmark must be able to export Power-to-X products and technologies
According to the Power-to-X strategy, two energy islands will be established, which in the first phase will supply 5 GW of electricity from offshore wind to the electricity system by 2030.
Moreover, with the agreement on the 2022 Finance Act, renewable energy production will be expanded by an additional 2 GW of offshore wind offshore Denmark by 2030.
It has also been agreed that in connection with its 2022 energy and utilities proposal, Denmark will present analyses that can form the basis for the potential tendering of an additional 1 GW of offshore wind energy.