On Tuesday, Denmark pledged to build up to six gigawatts (GW) of electrolysis capacity to convert renewable energy into green hydrogen as it looks to wean itself off fossil fuels and boost its energy security.
Hydrogen is categorized as ‘green’ when made with renewable power and is seen as key to help decarbonize industry, though the technology remains immature and costly.
Danish lawmakers agreed to subsidies worth 1.25 billion Danish crowns ($184.83 million) through one tender to support production and make green hydrogen more commercially viable.
“We have had an economy that has been based primarily on oil, but it will be based on hydrogen in the future,” climate and energy minister Dan Jorgensen said.
“This will help us become independent of fossil fuels,” he said, adding that he had reason to expect a faster approval of state aid from the EU given the war in Ukraine.
The European Union is currently struggling to rid itself of Russian gas, oil and other commodities.
Denmark’s goal rests on the comprehensive development of solar and wind energy. Still, Jorgensen declined to say whether the new agreement would trigger new renewable tenders and referred to political talks later this year.
Electrolysis uses electricity to split water into oxygen and hydrogen, which can be used directly for industrial purposes or as a fuel for heavy road transport or aviation, which is challenging to electrify with batteries.
The European Union has set a goal of six GW of electrolysis capacity by 2024 and 40 GW by 2030. Data from the International Energy Agency (IEA) shows that about 0.3 GW of generation capacity from electrolyzers exists today, data from the International Energy Agency (IEA) shows.
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