Denmark will delay by at least three more years construction of its planned North Sea energy island, citing rising costs and high interest rates.
The project’s earliest completion date is likely to be 2036 instead of 2033, according to the Reuters report.
Energy Minister Lars Aagaard told the news agency the projected investment exceeds Dkr200bn ($29.81bn) and would require about Dkr50bn crowns, declining to say how much the cost had increased from original projections.
Aarsgaard said Germany is showing great interest in being connected to the energy island project as the Danish government “prioritises efforts” to realise a collaboration with its neighbour.
According to Aagaard, discussions around continuing with Belgium as the original partner and co-investor continued right up to the Belgian parliamentary elections before the summer holidays, but that the countries “have not been able to find a way together that was sensible and acceptable to Denmark”.
The collaboration with Germany to deliver the energy island would entail redesigning the project to have a direct connection with Germany.
“And it is very positive that Germany in particular is showing great interest in being connected to the energy island.
“We are so far in the dialogue with Germany that we are prioritizing our efforts to realise the project in the direction of a collaboration with Germany – so that the energy island gets an electricity cable to Denmark and one to Germany,” said Aargaard.
The energy island is likely to be delayed for three years until 2036.
“When we have spent time making changes in the project, the time for a possible realisation is pushed out in time,” said Aargaard, adding: “And we will have to listen to the Germans about what they need and want in terms of capacity, schedule, etc.”
He said it is gratifying that a way forward has been found with Germany that can potentially make the energy island cheaper for Denmark.
“Now the project must be fleshed out so that we get a basis on which we can make political decisions.
“We are working hard on that and then we will take it from there”.