Denmark is working towards operating entirely on green electricity while fostering a more sustainable and secure Europe. On 31 January, the Danish Government announced initiatives to support the offshore wind and hydrogen markets in light of global challenges. It proposed state subsidies to facilitate the development of 2-3 GW of offshore wind capacity and will allocate funds to establish a hydrogen backbone from Esbjerg to the German border by 2030.
The goal is to ensure that all electricity supplied in Denmark is green and produced independently. While the push for a rapid green transition is crucial, challenges remain, such as rising prices and supply chain pressures. Recent developments in the offshore wind tender in the North Sea highlighted these issues.
“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 the Minister for Climate, Energy and Utilities Lars Aagaard.
“We must be able to power a green electricity consumption as well as contribute to a more green and secure Europe. It is not an easy manoeuvre, and the final details await further discussions with the industry and parties behind the former political agreements. I hope that the parties of the Parliament will agree on the reasoning behind the possibility of bringing state subsidies back, so we can ensure a green Danish energy supply,” the Minister added.
To mitigate these challenges, the government is preparing a new tender for 2-3 GW of offshore wind this year, offering more attractive terms, including state subsidies and increased flexibility for bidders. Further details will be finalised after discussions with political parties.
A hydrogen net from Esbjerg to Germany in 2030
Like offshore wind, green hydrogen can greatly enhance energy security and the green transition in Europe, particularly in Germany, where the industry is shifting away from fossil fuels. Danish hydrogen exports are expected to provide certainty for Danish offshore wind and create green jobs, especially in regions with high renewable energy production.
To support the emerging hydrogen market, the Danish Government plans to invest billions (DKK) and aims to facilitate exports to Germany by 2030. Specific terms for infrastructure development will be discussed with stakeholders in early February. The government proposes reducing booking requirements to kick-start the pipeline project.
“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 realising hydrogen export to Germany in 2030. Therefore, we now increase government funding and present the initiatives to enable establishment of the first stretch of the pipeline. This is the beginning, not the end,” said the Minister for Climate, Energy and Utilities.
While the goal includes a full-scale hydrogen backbone in Jutland, initial efforts will focus on constructing the pipeline from Esbjerg to the German border. The Ministry of Climate, Energy and Utilities will develop plans for the next phases.
Additionally, the government has noted that the legal framework for the next stage of the Bornholm Energy Island is not yet in place, but utilising Danish waters for a greener Europe remains a priority. Denmark is ready to continue discussions with the new German government on meeting Germany’s green electricity needs and is open to exploring strategies to realise this project.
