Seafaring is an important Danish strength, but even though Denmark is doing well, we risk falling behind in the production of green fuels if nothing is done.
That is why a growth team led by former chairman of the board of directors of Maersk Jim Hagemann Snabe is coming up with a number of recommendations on Wednesday for how this can be achieved. And he is hopeful on behalf of Denmark.
- The starting point is exciting because we are already insanely talented. We are both talented in maritime and talented in green energy. If we can link the two and target some of the investments, I actually think we can show the world how it's done, he says.
The financial investments must be targeted in the right direction, suggests the Growth Team, which also calls for establishing strategic partnerships for the production of green fuels.
This must be done to an even greater extent than before through partnerships with countries in North Africa that have access to cheap solar energy.
Energy is crucial in creating green fuels, as producing hydrogen is very resource-intensive. Shipping demand for green fuels will increase significantly towards 2050, when there are goals for climate neutrality.
A number of European energy companies, including Denmark's Ørsted, have been severely challenged in their green fuel projects in recent years.
Maersk recently lowered its ambitions because it has been much more difficult for the transport giant to obtain green fuels than initially expected.
The EU must promote innovation and investment
The fight is largely taking place within the EU, where governments and companies experience hassle and bureaucracy. The challenge is that other countries - especially China - are set to become leaders in the production of green fuels, even though Denmark is doing well.
But Danish companies spend too many resources on applying and on bureaucracy under the EU, and this deters companies from applying, according to Minister of Industry and Trade Morten Bødskov (S).
- In the EU, we must ensure that Danish shipping companies and Danish maritime companies' access to support for green transition becomes much more efficient and much easier. There is far too much bureaucracy and hassle standing in the way, he says.
In Denmark, the challenge for the government is to ensure that EU state support is given to technologies that can help develop green fuels, according to the minister.
- It is very important that we fight now, especially at the European level. If we cannot make it easier, and they can see that it will be easier, possibly with support from the EU, then there are opportunities for them to place investments elsewhere, says Bødskov.
The Growth Team also recommends that innovation and technology development should be promoted through digital solutions, so that maritime companies can compete more internationally.
In addition, the international regulation of shipping must be influenced so that it supports green solutions and ensures a level playing field.
/ritzau
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