The Danish Energy Agency has announced the six winners of the country’s first Danish Power-to-X (PtX) tender awarding state aid for the successful bidders to establish electrolysis capacity of more than 280MW to build up the production of green hydrogen.
The winning projects are 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 have applied for in the bidding process.
The sixth winner HyProDenmark/Everfuel will be offered a reduced budget.
PtX is an essential technology in the green transition of Denmark in order to meet climate neutrality by 2050 said the Agency. Green hydrogen produced by PtX enables renewable solutions also in hard-to-abate sectors where electrification is difficult like heavy transport, shipping and aviation it added.
The tender process was opened in April 2023 and the bidding companies have applied for more than DKK4bn, more than three times the budget of DKK1.25bn.
“The DEA highly appreciates the great interest for the tender,” said deputy director Martin Hansen.
“This is the first time we get an indication of the need for support to green hydrogen, and it is a strong signal from the market that so many bids are below 70DKK/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 happy to be able to help the industry along with these funds.”
The six winning projects have bid with different support needs and different electrolysis capacities. The lowest subsidy price is from the Plug Power Idomlund Denmark project with a price of DKK 9.3 pr. GJ green hydrogen produced. The support will be given as a fixed subsidy price over a period of 10 years.
With the announcement of the result of the tender there will now be declared a period of 10 days stand still. After this, the DEA and winning projects will sign the deals under the condition that no complaints are received.
After the conclusion of the contracts, the winning projects have four years to build the electrolysis plants and start the production of green hydrogen. Most of the projects, however, expect to start the production sooner.