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Denmark's new hydrogen agreement: Paving the way for a green export adventure and local growth

In a significant move towards strengthening Denmark’s commitment to sustainable energy, the government has recently introduced a new hydrogen agreement. Today the framework conditions for financing the hydrogen pipeline in Jutland were launched. This initiative not only reinforces Denmark's pledge to a greener future but also presents a compelling proposition for international companies seeking to establish their business in Europe.
When 05.04.2024
What
Cleantech Hydrogen Power-to-X
Denmark's new hydrogen agreement, spearheaded by the Danish Ministry of Climate, Energy, and Utilities, sets the stage for a more sustainable energy landscape. By prioritizing hydrogen sources, Denmark aims to reduce its reliance on fossil fuels and accelerate its transition towards a green, sustainable future.

Financing A new hydrogen backbone infrastructure 

The North Sea contains enormous offshore wind energy potential. Converting the renewable electricity to green hydrogen can boost the production of green fuels for heavy industry, ships and aircraft. The new agreement creates the framework for financing and regulation of a hydrogen backbone in Denmark, which can be used to export the green hydrogen to Germany.

The infrastructure and pipe systems for the transport of hydrogen become state-owned with a limited financial risk, and this is ensured by the agreement. It is a condition that market players are part of the development and fulfill five conditions. This means, among other things, that the market players must undertake to buy 1.4 GW, which corresponds to approx. 44 percent of the pipe's capacity. The requirement for market players to book capacity up front is to ensure that the state only invests in building a pipe that is used.

Export opportunities

This renewed focus on hydrogen is not merely an environmental commitment; it's a strategic economic initiative. Denmark is gearing up to emerge as a leading exporter of sustainable hydrogen solutions, opening new avenues for international trade and investment. With its advanced infrastructure and supportive business environment, Denmark provides international companies a competitive advantage in accessing this growing market.

Local Growth and Job Creation

The hydrogen sector holds great potential for local growth and job creation. As Denmark intensifies its hydrogen production, it will generate opportunities across the value chain – from research and development to manufacturing and distribution. International companies establishing operations in Denmark can leverage access to a highly skilled workforce, world-class R&D facilities, and a business-friendly ecosystem that nurtures innovation and growth.

Why Choose Denmark for Your Business Expansion?

  • Strategic Location

Located at the crossroads of Northern Europe, Denmark offers unparalleled access to the European market, positioning it as an ideal base for international companies aiming to expand their footprint.

  • Renewable Energy and PtX projects 

The Danish part of the North Sea contains some of the best offshore wind energy resources in the word. Danish PtX developers have already announced upcoming projects which together amount to 9 GW, of which 7 GW is close to the hydrogen backbone.

  • Supportive Business Environment

Denmark has a transparent and business-friendly regulatory framework, complemented by attractive incentives for foreign investors, facilitating a seamless setup and operation for international companies.

get a comprehensive overview of Denmark's new hydrogen agreement

For a full overview of Denmark's new hydrogen agreement, please click the link to read the full announcement (in Danish only).
Click here

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