Denmark should be able to supply green PtX fuels for international transport by 2035, equivalent to a CO2 reduction of 2.5 million tonnes. This is stated in a new report from Green Power Denmark, which is co-sponsored by the Confederation of Danish Industry and the Danish Shipping Association. The report contains four recommendations to the government.
- There is a need to increase our ambitions where we can contribute the most CO2 reductions. An obvious place to start is by producing green PtX fuels for the international transport sector. Denmark has a unique opportunity to lead the way and help reduce emissions, but this requires us to be up to speed now and ensure that the necessary investment decisions are made by mid-2026, says Camilla Holbech, Director of Renewable Energy and PtX at Green Power Denmark.
The recommendations are intended to strengthen Denmark's role in the global green transition of shipping and aviation. The report highlights the need for rapid investment decisions by mid-2026, a fixed production target, targeted use of EU funds and continued political engagement in both the EU and the UN organizations IMO and ICAO.
Political priorities necessary
The report points to, among other things, the installation of more offshore wind, the capture of biogenic CO2 from combined heat and power plants and the mobilization of strong Danish companies in the value chain. At the same time, it is proposed that funds from the EU's emissions trading system be earmarked for Danish PtX production via a dual auction mechanism. The goal is an effective integration of the entire supply chain – from production to use in shipping and aviation.
- To succeed, it requires the right political prioritization, and that the government acts now. Denmark has the potential to significantly expand our wind and solar capacity, we have good opportunities to capture the biogenic CO2 from our combined heat and power plants, and we have skilled companies throughout the value chain that are ready to move. In other words, all the right prerequisites are present to produce green fuels on a large scale, says Camilla Holbech.
The report and its calculations were prepared by Green Power Denmark, but the Confederation of Danish Industry and the Danish Shipping Companies support its messages.
- Danish shipping is a frontrunner in the green transition on the world's oceans. But a massive scale-up of the production of green fuels to put in the tanks of our ships is needed if we are to fully achieve the ambition of climate-neutral shipping, and if we are to be able to comply with current EU regulations and the IMO's Net Zero Framework. This requires investments in the entire value chain, and it also requires a strong focus on establishing and scaling up production of PtX fuels in Denmark, says Nina Porst, Director of Climate, Environment and Safety at Danish Shipping Companies.
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The four recommendations:
- The government must continue the strong work in IMO and engage further in ICAO, to ensure a global and ambitious use of PtX fuels.
- The government must work to ensure that the EU maintains adopted green objectives and implements new instruments that can ensure the production of PtX fuels.
- The government must set a 2035 target for Danish production of PtX fuels to aviation and shipping.
- The government must earmark Danish funds from the EU ETS for Danish PtX production and implement the funds via a double auction mechanism.
Source: Danish production of green PtX fuels for aviation and shipping
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