Danish Energy Agency to support build-up of >280 MW of electrolysis capacity

The Danish Energy Agency (DEA) has revealed the winners of the first Danish Power-to-X (PtX) tender. The six winning projects, to be developed by four different companies, will collectively receive DKK 1.25 billion (€167 million) of state aid to establish a total electrolysis capacity exceeding 280 MW.

PtX is considered an essential technology in Denmark’s green transition to achieve climate neutrality by 2050. Green hydrogen produced through PtX enables renewable solutions also in hard-to-abate sectors where electrification is difficult, such as heavy transport, shipping, and aviation.

In April 2023 the PtX tender opened for bids, and the market has shown great interest for the tender. The bidding companies collectively applied for more than DKK 4 billion, which is more than three times the budget of DKK 1.25 billion.

The winning projects are: Plug Power Idomlund Denmark (100 MW), European Energy/Vindtestcenter Måde K/S (9 MW), European Energy/Padborg PtX ApS (150 MW), Electrochaea/Biocat Roslev (10 MW), and European Energy/Kassø PtX Expansion ApS (10 MW). These five projects will receive the full budget they applied for in the bidding process. The sixth winner, HyProDenmark/Everfuel, will be offered a reduced budget.

The winning projects submitted different support needs for various electrolysis capacities. The lowest subsidy price is from the Plug Power Idomlund Denmark project, with a price of DKK 9.3 per GJ of green hydrogen produced. The support will be provided as a fixed subsidy price over a 10-year period.

Following the contract conclusion, the winning projects will have four years to build the electrolysis plants and commence green hydrogen production. However, most projects anticipate starting production earlier.

Martin Hansen, Deputy Director General of DEA, said: “The DEA highly appreciates the great interest for the Tender. This is the first time we get an indication of the need for support to green hydrogen, and it is a strong signal from the market that so many bids are below 70 DKK/GJ. It is good for the competition in the industry and for the green transition. This is an industry in the making, and we are happy to be able to help the industry along with these funds.”

HTW Editorial Team

HTW Editorial Team

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