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Denmark unveils new initiatives to expand wind power and green hydrogen


The Danish Government has unveiled new initiatives to accelerate the development of offshore wind and green hydrogen, aiming to ensure Denmark's energy independence and support Europe's green transition. In response to global challenges facing these markets, the government is considering state subsidies to enable the installation of 2-3 GW of offshore wind capacity. Additionally, significant government funding will be allocated to establish a hydrogen backbone from Esbjerg to the German border by 2030.

Strengthening offshore wind energy

Denmark is committed to operating entirely on green electricity and contributing to a more sustainable and secure Europe. However, the recent offshore wind tender in the North Sea highlighted challenges in the market such as rising costs, strained supply chains and uncertainty in demand growth.

To address these issues, the Danish Government is launching initiatives to expedite the deployment of offshore wind turbines in Danish waters.

“The need for more green electricity and energy in Denmark and Europe is evident. However, we are standing at a crossroads where we must rise to the occasion in order to choose the right path. The Danish Government will go all in to establish the conditions that can enable a rapid scale-up of Danish offshore wind,” said Lars Aagaard, Minister for Climate, Energy and Utilities.

The government plans to initiate the process for a new 2-3 GW offshore wind tender in 2025, with the goal of concluding it by spring 2026. This new tender will include more attractive terms for bidders, including potential state subsidies and increased flexibility.

Hydrogen backbone to Germany

In addition to offshore wind, Denmark is investing heavily in green hydrogen, recognizing its potential to enhance energy security and facilitate Europe's transition away from fossil fuels. Germany, undergoing a major industrial transformation, presents a key market for Danish hydrogen exports.

To kick-start this emerging market, the Danish Government has pledged large-scale financial support for hydrogen infrastructure. The first phase of the hydrogen backbone will connect Esbjerg to the German border, with export operations set to begin by 2030. Further expansion towards the north and east of Jutland, including Fredericia, is also under consideration.

“Denmark has an opportunity and an obligation to take part in kick-starting the emerging hydrogen market in Europe. Furthermore, it presents green business opportunities in Denmark. We are committed to realizing hydrogen export to Germany in 2030,” Aagaard stated.

To achieve this, the government proposes reducing booking requirements for hydrogen transport, enabling the pipeline’s first phase to be based on a single project.

Future of Bornholm Energy Island

Despite progress in offshore wind and hydrogen, the government acknowledges that legal barriers prevent further development of the Bornholm Energy Island. The project remains a priority, and Denmark is prepared to continue discussions with Germany as soon as a new German Government is established.

 

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