Denmark on Wednesday opened a Power-to-X (PtX) tender, which will allocate DKK 1.25 billion (USD 183m/EUR 168m) to support the production of green hydrogen, which can be used to produce fuels for hard-to-abate sectors such as industry, heavy road transport, shipping and aviation.
Interested parties have until September 1 to submit bids.
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The PtX tender, run by the Danish Energy Agency, is the result of a political agreement reached in March 2022. It will contribute to Denmark’s ambition to install 4 GW-6 GW of electrolysis capacity by 2030.
The market-based auction will seek to award subsidies over 10 years as operating support, based on the volume of hydrogen produced. Only hydrogen that is made using renewable energy sources can compete in the tender. The government will aim to achieve the cheapest price and largest hydrogen amount for the budget.
Energy minister Lars Aagaard said that wind and solar energy could be converted into hydrogen and in this way into a new Danish export adventure, which would also help other countries get rid of fossil energy.
Industry group Green Power Denmark applauded the opening of the tender, saying that Denmark has the potential to become a pioneer country for the green fuels of the future. It also called on the government to present plans for establishing a hydrogen transport infrastructure.
According to the government’s statement, the political parties will soon be summoned to negotiations on the framework for the Danish hydrogen infrastructure.
(DKK 1 = USD 0.147/EUR 0.134)