The Danish Energy Agency (DEA) has unveiled the names of the six successful recipients of the nation's inaugural Danish Power-to-X (PtX) tender, marking a significant step in the development of green hydrogen infrastructure. These projects will receive state aid to establish electrolysis capacity totaling over 280MW, contributing to Denmark's ambitious climate neutrality goals by 2050.
The winning projects and their allocated capacity are as follows: Plug Power Idomlund Denmark (100MW), European Energy/Vindtestcenter Måde K/S (9MW), European Energy/Padborg PtX ApS (150MW), Electrochaea/Biocat Roslev, and European Energy/Kasso PtX Expansion ApS (10MW). These five projects will receive the full budget they applied for during the competitive bidding process.
The sixth winner, HyProDenmark/Everfuel, will receive a reduced budget as part of the state aid package.
PtX technology is considered pivotal in Denmark's green transition, facilitating the nation's journey towards climate neutrality by 2050. It enables the production of green hydrogen, offering renewable solutions in industries where electrification faces challenges, such as heavy transport, shipping, and aviation.
The tender process, initiated in April 2023, garnered significant interest, with bidding companies applying for over DKK 4 billion, more than three times the allocated budget of DKK 1.25 billion.
“The DEA highly appreciates the great interest in the tender,” stated deputy director Martin Hansen. “This is the first time we get an indication of the need for support for green hydrogen, and it is a strong signal from the market that so many bids are below 70 DKK/GJ. It is good for the competition in the industry and for the green transition. This is an industry in the making, and we are pleased to be able to assist the industry with these funds.”
The winning projects have submitted varying support requirements and electrolysis capacities. The lowest subsidy price was offered by the Plug Power Idomlund Denmark project, at DKK 9.3 per gigajoule (GJ) of green hydrogen produced. The support will be provided as a fixed subsidy price over a ten-year period.
Following the announcement of the tender results, there will be a ten-day standstill period. Subsequently, the DEA and the winning projects will proceed with signing agreements, provided no complaints are lodged.
Once the contracts are finalized, the winning projects will have four years to construct the electrolysis plants and commence green hydrogen production.
