Power-to-X: Green Hydrogen to Fuel the Future

Power-to-X is a key component in Denmark’s path towards the achievement of the national goal of 70 pct. CO2-reduction in 2030 and ultimately carbon neutrality in 2050 at latest.

Both direct and indirect electrification are integral parts of the Danish path towards carbon neutrality. Power-to-X is expected to play a key role in decarbonizing hard-to-abate sectors, such as long haul transport, aviation, shipping and segments of the heavy industry.

Power-to-X is an umbrella term, which refers to a series of technologies using renewable power for the production of green hydrogen through electrolysis. Hydrogen is then either used directly or combined with green carbon (CCU) or nitrogen and converted into different products, including fuels and chemicals (e.g. methanol, ammonia, aviation fuel, plastic, etc.).

Denmark has a series of competitive advantages when it comes to Power-to-X: Abundant wind resources, a highly integrated energy system as well as innovative actors across the whole hydrogen value chain.

It is important to create the right conditions for a robust development of Power-to-X technologies as well as increased demand for green fuels. The Danish government has already allocated substantial funds to this aim. Besides investments in R&D, also:

  • Minimum 100 million euros (750 million DKK) to a tender for large-scale Power-to-X projects as part of the Climate Action Plan from June 2021.
  • 110 million euros (850 million DKK) to Danish participation in an Important Project of Common European Interest (IPCEI) on hydrogen.

In addition to subsidies, the hydrogen market needs to be boosted through a stable regulatory framework, both at national and European level, which provides clarity to the different hydrogen stakeholders.

The Danish government will therefore present a national hydrogen and Power-to-X strategy within the end of the year. The strategy is expected to address current opportunities and challenges in connection with hydrogen technologies, and provide a framework for accelerating the development of Power-to-X in Denmark.


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