Denmark’s new national PtX strategy (pdf) was released in December 2021, and this week received bipartisan support (Danish language) from the country’s parliament. A number of policy levers were approved to unlock green fuel production potential across the country, with ammonia forecast to be the cheapest long-term option amongst the hydrogen derivatives. PtX fuels have the greatest potential for emissions abatement in the aviation and shipping sectors, both for domestic transport in Denmark and internationally.
With the agreement, we strengthen the climate, Danish industry and green security of supply. I am very pleased that we have broad political agreement to set the goal so high that Denmark can play more than a national role in the development and production of new fuels. Europe is intensely looking for alternatives to fossil energy and we are busy.Denmark’s Minister of Climate, Energy and Supply, Dan Jørgensen (translated from Danish) in the official press release from the Danish Ministry of Climate, Energy and Utilities, 15 March 2022
A detailed set of policy levers is outlined, all of which will eventually be adopted by the Danish government:
- A $125 million tender for PtX projects, supporting renewable hydrogen production at a fixed price subsidy for a period of ten years.
- Creating a regulatory framework for a national hydrogen market, and updated rules to allow the national gas distributor Energinet and Evida to own & operate hydrogen transport infrastructure.
- Implement “geographically differentiated consumption tariffs”, encouraging PtX project developers to choose locations well away from existing high demand points on the Danish national grid. An additional role for the government will be to facilitate links between PtX developers and industrial energy consumers, making best use of any generated renewable energy.
- Allowing PtX developers to build direct transmission links between renewable energy generation and production facilities (where an application process deems it appropriate).
- Set an electrolysis target of 4-6 GW installed by 2030.
- Ensure hydrogen & green fuel exports from Denmark eventuate by connecting Danish infrastructure to planned EU hydrogen pipelines, and providing ample support for Danish supply chain companies to capitalise.