Six projects have received funding from Denmark’s first hydrogen tender. The tender represents a new era in Danish energy policy and the results of the tender show that Danish hydrogen companies are willing to invest when the conditions are sound. The winning companies can now take the first steps to bring a new Danish hydrogen adventure to life.
Hydrogen Denmark, the Danish national hydrogen association representing the entire Danish hydrogen value chain, is very pleased with the results of the first Danish hydrogen tender. Six hydrogen production projects will receive a total of 1,25 billion DKK and have committed to establishing 280 MW electrolysis capacity in 2030. A total of 675 MW of projects had applied to the tender.
According to Hydrogen Denmark’s CEO, Tejs Laustsen Jensen, the results of the tender are a sign of an ambitious Danish hydrogen industry:
“We are happy to hear that so many projects have applied for the funding, and big congratulations to the winners. It shows that the Danish hydrogen industry is willing to invest, and it underlines that Danish companies are ready to turn potentials into real world projects. The tender will not only kickstart large scale projects in Denmark but also serve as a motor for the European hydrogen industry. Green hydrogen and hydrogen derivatives are crucial for Europe’s green transition and Danish companies both have the skills and the will to play a leading part in the European hydrogen sector,” says Tejs Laustsen Jensen.
Hydrogen Denmark was also pleased with the design of the tender, one of the first of its kind in Europe. At the same time, Hydrogen Denmark urges the Danish government to initiate new tenders quickly, which among others can be linked to the European Hydrogen Bank.
“It is positive that we now have concluded the first tender with such great results. Hydrogen Denmark has actively worked to get the money from the tender injected into the Danish hydrogen industry. We would like to thank the Danish Energy Agency for creating a tender design that was relatively simple and straightforward. Now we have to build on this success, so we can reach our national goals of 4-6 GW electrolysis capacity in 2030. We need more funding to reach this goal, and we recommend that Denmark will channel its future tenders via the European Hydrogen Bank (by using the auction as a service mechanism, where member countries can support their national projects, which do not win the primary auction) and not as national tenders. This will make it easier and quicker for companies to apply and get clarity. This will serve both companies and the climate well because time is of the essence,” said Tejs Laustsen Jensen.
Lastly, Hydrogen Denmark encourages Danish politicians to keep up the pace:
“The success of the tender shows how dedicated and ambitious the Danish hydrogen industry is – and we must maintain this momentum. Therefore, politicians must contribute by creating stability for the industry. This means stable framework conditions and the announcing of new tenders. It is also essential that a decision on the financing of the Danish hydrogen backbone comes in place soon,” says Tejs Laustsen Jensen.
FACTS:
- The winning projects are Plug Power Idomlund Denmark, European Energy/Vindtestcenter Måde K/S, European Energy/Padborg PtX ApS, Electrochaea/Biocat Roslev and European Energy/Kassø PtX Expansion ApS. Those five projects will receive the full budget they have applied for in the bidding process. The sixth winner HyProDenmark/Everfuel will be offered a reduced budget.
- In April 2023 the Power-to-X Tender was opened for bids and closed by September 1, 2023.
- The total budget of the PtX tender is 1,25 billion DKK.
- The Energy Agency has received bids for more than four billion DKK corresponding to electrolysis capacity of more than 675 MW.
- The Danish Energy Agency has found six winning projects planned by four different companies.
Source on facts: Danish Energy Agency – https://ens.dk/en/press/first-ptx-tender-denmark-has-been-determined-six-projects-will-establish-electrolysis-capacity
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