The power in Danish electricity outlets must be green – and Denmark must be able to produce it independently. As issues such as competitiveness, cohesion and the need to ensure independent energy production are emphasized repeatedly, a rapid green transition and decarbonization have become a common denominator.
However, strong signals of an offshore wind market challenged also show through a combination of rapidly increasing prices, supply chains under pressure, and uncertainty about the speed of demand growth of green energy. Most recently, this became evident through the Danish offshore wind tender in the North Sea.
To mitigate these challenges, the Danish Government now presents a series of initiatives that aim to get more offshore turbines spinning in the Danish waters, so they can contribute to a more green and secure Denmark.
“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. 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 maneuver, and the final details awaits 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,” says the Minister for Climate, Energy and Utilities Lars Aagaard.
With the initiatives presented to the parties behind the former political agreement on offshore wind earlier today, preparations to publish a new tender of 2-3 GW offshore wind this year will begin. The new tender will present more attractive terms, including the option of state subsidies and more flexibility for the bidders. The specific framework is pending further dialogue with the political parties.
A hydrogen backbone from Esbjerg to Germany in 2030
Like offshore wind, green hydrogen is one of the elements that can contribute greatly to energy security and green transition in Europe. The potential is especially present in Germany where the industry is facing an extensive transformation away from fossil fuels. Furthermore, Danish hydrogen export can contribute to establishing more certainty around the offtake of Danish offshore wind as well as support an increase in green jobs and development in the areas of Denmark, where renewable energy production is highest.
On this background, the Danish Government is willing to provide funding at billion scale (DKK) to support the emerging Danish hydrogen market. At this stage, time is of the essence, and therefore the Government is committed to making export to Germany possible from 2030.
“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 realizing 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,” says the Minister for Climate, Energy and Utilities.
The specific terms for the buildout await further dialogue with the parties behind the political agreement in early February. However, the Government suggest reducing the booking requirements in order to realize the first phase of the pipeline based on one project.
A full-scale hydrogen backbone in Jutland also includes expansion further north and east towards Fredericia. However, meeting the 2030 ambition requires a dedicated focus on building the first stretch of the pipeline from Esbjerg to the German border – but the ambition of the full-scale backbone still stands. The Ministry of Climate Energy and Utilities will initiate a process to develop a plan for the next phases.
Finally, the Government has informed the parties behind the political agreement that the legal framework to execute the next stage of the Bornholm Energy Island is not in place. It is still a top-priority to utilize Danish waters for the benefit of a more green and secure Europe. As soon as a new German Government is in place, Denmark is ready to continue discussions on how to support the German need for green electricity. Denmark is open to discuss potential ways to realize the project and areas in the current market where expenses will increase.
FACTS: New initiatives on offshore wind and hydrogen
- The Government will initiate the preparations to publish a 2-3 GW offshore wind tender this year.
- The aim is to conclude the tender in the spring of 2026.
- The Government and the parties behind the former political agreement agrees to cancel the ongoing 3 GW offshore wind tender in the inner Danish straits.
- The Government will provide an amount at DKK billion scale to enable the establishment of hydrogen infrastructure from Esbjerg to the German border. Furthermore, the booking capacity will be reduced to 0.5 GW.
- Preparations to ensure hydrogen export by 2030 are already in motion. According to plan, it is possible to expand the pipeline towards the north and east of Jutland at a later stage. The Ministry of Climate Energy and Utilities will initiate a process to develop a plan for the next phases.
- It has not been possible to ensure the legal framework in order to continue with the next phase of the establishment of the Bornholm Energy Island. The discussion on how Denmark can support the German need for green electricity will continue when a new German Government is in place.