Denmark has advanced towards its climate targets by implementing a new mandate that facilitates the issuance of guarantees of origin for hydrogen.
Effective from July 1, 2023, this regulation empowers Power-to-X (PtX) stakeholders to market and trade green hydrogen, promoting transparency and accountability in the renewable energy domain.
Previously, guarantees of origin were confined to electricity, gas, and heat, restricting the capacity of energy enterprises to showcase their participation in green energy. However, the inclusion of hydrogen, a key player in the PtX process, makes it feasible to certify the production of hydrogen using renewable energy sources.
This progression unlocks a myriad of opportunities for PtX participants to accentuate their supply of green hydrogen, while firms and consumers can now assert their consumption of this sustainable energy source. By introducing guarantees of origin for hydrogen, Denmark aims to expedite the transition to a green society and endorse indirect electrification via PtX technology.
PtX technology plays a crucial role in facilitating the production of fuels and chemicals that can substitute fossil-based products in sectors that have been historically hard to decarbonize like shipping, aviation, agriculture, certain industries, and heavy road transport. This makes PtX an essential solution to achieve Denmark’s long-term climate neutrality target by 2050.
The Danish Energy Agency underlines that propelling the PtX process depends on ensuring the hydrogen employed in these processes is produced from renewable energy sources. The initiation of guarantees of origin for hydrogen provides the required validation, building trust among stakeholders and promoting the broad acceptance of green hydrogen.
By bolstering the production, trade, and use of green hydrogen, Denmark sets a precedent for other nations striving to build sustainable and decarbonized economies. The enforcement of this executive order not only aligns with Denmark’s ambitious climate objectives but also fortifies its status as a pioneer in renewable energy innovation.
The potential influence of this new order surpasses Denmark’s boundaries, as the global demand for clean energy solutions persists in its growth. By instituting a solid framework for green hydrogen certification, Denmark contributes to the global efforts in battling climate change and transitioning to a low-carbon future.
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