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Denmark - The Government’s Strategy for Power-to-X

Dec 6, 2021

The Danish Government has developed a strategy for Power-to-X (PtX) and Carbon Capture and Utilisation (CCU) to support its climate neutrality ambitions. This plan includes significant investments in electrification, with a target of 4-6 GW of electrolysis capacity by 2030, and funding for green technologies, hydrogen projects, and large-scale commercial demonstrations in the PtX sector.

The Danish Government, in alignment with the Climate agreement of 22 June 2020, has formulated a strategy for Power-to-X (PtX) and Carbon Capture and Utilisation (CCU) to advance its climate neutrality goals. This strategy, influenced by the Danish Energy Agency's insights and ongoing discussions with the PtX industry, outlines four main objectives: 1) PtX's alignment with the Danish Climate Act's goals, 2) establishing a conducive regulatory and infrastructural environment for the PtX industry to thrive in the long term, 3) enhancing the integration of PtX with the Danish energy system, and 4) promoting the export of PtX products and technologies. The government envisions a significant role for electrification in the nation's future, targeting the establishment of 4-6 GW of electrolysis capacity by 2030. To support this, they propose an investment of DKK 1.25 billion for PtX production upscaling and DKK 344 million for green technological innovations. The strategy also emphasizes the importance of green fuels, allocating nearly DKK 1 billion for research and development in this area. Furthermore, the government plans to fund hydrogen value chain projects, support PtX development through various programs, and inject DKK 6 billion into the Danish Investment Fund to back large-scale commercial demonstration projects, including those in PtX.

Read the report here:

Denmarks Hydrogen Strategy
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