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Denmark allocates over EUR 114 million to develop Power-to-X technologies

Denmark allocates over EUR 114 million to develop Power-to-X technologies

It seeks to find green fuel solutions which will accelerate the green transition

It is a well-known fact that the transportation industry causes significant harm to the environment. This is especially true for heavy vehicles such as trucks, ships and aircraft. Acknowledging how crucial it is to develop CO2 neutral solutions within this industry, the Danish government has announced that it will allocate DKK 850 million (EUR 114,284,935) for the development of Power-to-X technologies.

Speeding up the green transition

The Power-to-X technology will enable the conversion of power into hydrogen and other sustainable fuels which will be used in the aforementioned transportation vehicles. According to the Danish government, the country has the potential to develop CO2 neutral solutions thanks to its strong transportation sector, large production of renewable energy, and robust research environment.

Minister of Climate Dan Jørgensen commented on the large investment and the country’s aims: “Production of green hydrogen has a huge potential, both to create CO2 reductions and to become Denmark’s next green business adventure. With a joint, European effort, we can really get the technology up in scale and down in price and speed up the green transition of e.g., shipping and aviation that cannot be directly electrified.

We allocate DKK 850 million to give Danish companies the best conditions for developing Power-to-X technology and help kick-start the production of green fuels. It will not only benefit Denmark, but also the whole of Europe.”

At the forefront of future green fuel solutions

It must be noted that the funds have been issued for the country’s participation in a pan-European project, namely IPCEI (Important Projects of Common European Interest). Through the IPCEI, the European Commission provides state aid for projects that will benefit Europe as a whole and increase the EU’s competitiveness.

In a press release, the government reported that six hydrogen projects have been nominated to receive support. The final selection and the decisions on state aid will take place in July, following a matchmaking process which will evaluate Denmark’s nominees alongside other European projects.

Member of the Conservative People's Party Katarina Ammitzbøll commented on this, noting that participation in the IPCEI is extremely important if Denmark wishes to be at the forefront of the green agenda in Europe.

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