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Danish Parliament Approves $185M Support Package for Power-to-X Fuels

green hydrogen denmark
Avedore Power Station is the home of one of Denmark's first green hydrogen projects, Orsted's H2Res (Orsted)

Published Mar 15, 2022 5:10 PM by The Maritime Executive

Denmark's parliament has approved a funding package of nearly $185 million to support development of green hydrogen-based "Power-to-X" fuels like green methanol, the future fuel of choice for Maersk Line. The bill received backing from the full range of Denmark's political spectrum, from the far-right Danish People's Party to the eco-socialist Red-Green Alliance. 

"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 . . . both by becoming green and by becoming more independent of Russian black energy," said Minister of Climate, Energy and Supply Dan Jørgensen. 

With the agreement, Denmark will aim to build a hydrogen electrolysis capacity of four to six gigawatts by 2030. This puts Denmark among the top three European countries for green hydrogen ambition. If achieved, this will accelerate the phase-out of fossil fuels and reduce dependence on Russian oil and gas, while giving Denmark a new export industry opportunity as an energy supplier. The nation is already a net exporter of green electricity. 

The new support program includes a $185 million subsidy package, with a government tender for hydrogen production and an expansion of business promotion measures. This brings the Danish government's total spending on Power-to-X fuels to about $440 million since 2019. 

"The agreement is the starting shot for a new green business and export adventure, which is now also about becoming independent of Russian energy sources as soon as possible," said Minister of Trade and Industry Simon Kollerup.