On Monday, the Danish Export and Investment Fund decided to award five projects, including Siemens Gamesa, Niebuhr Gears and H2Giga, support totaling DKK 634.1 million from the green investment support scheme that the government established in December last year.
The support goes to projects that will total investments of just over DKK 4.2 billion, and goes to projects that either expand production or establish new production in Denmark. And the money is well spent, Green Power Denmark states in a press release.
- Without this help, there is a great risk that companies will otherwise invest in other countries in Europe, where there are lucrative schemes with state support. It is the harsh reality that the fight for green investments and jobs is currently also being fought with state support, says Jan Hylleberg, deputy managing director. CEO of Green Power Denmark.
The investment scheme is targeted at companies that produce wind turbine technology and electrolyzers in Denmark. A prerequisite for receiving support is that the companies can demonstrate that they would be able to receive support in another country.
- Companies are facing enormous investments in the coming years. Therefore, it is very positive that the government is helping to ensure that the investments and jobs are located in Denmark with the scheme. The money has therefore been really well spent, says Jan Hylleberg.
Against state aid in principle
Despite the positive statements about Monday's support, Green Power Denmark is against state aid in principle, as it is unhealthy in free competition. However, in the current competitive situation, where many other countries offer attractive state aid opportunities, it is necessary to offer support to companies that are going to establish green production, as they will otherwise move it to other countries. Therefore, Jan Hylleberg recommends that the government extend the scheme into 2025.
- There are still a number of companies that are faced with having to make important investment decisions. The government should announce as soon as possible that it is ready to help also in 2025, so that companies can take this into account when placing their future investments, and so that as many of them as possible are placed in Denmark, he says.
Green Power Denmark proposes that the first round of the green investment scheme be quickly evaluated and possibly adjusted, and that it be provided with 1.5 billion kroner in 2025. The scheme will then cover the period when the EU's relaxed state aid rules apply.
After 2025, Denmark should work to ensure that there are common financing solutions in the EU, so as to avoid a continued internal state aid race between European countries.
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