New recommendations for national PtX strategy

Power-to-X is crucial for the Danish climate strategy, and if it is to succeed in making Danish industry and heavy transport greener.

But for Power-to-X to be a success, political action is necessary to ensure that green alternative fuels such as hydrogen become competitive with fossil products.

To show the way for political action, 18 leading actors in the field have come together on a series of recommendations for a Danish strategy for Power-to-X, which actors will present to Minister for Climate, Energy and Utilities Dan Jørgensen (S) on Thursday.

- The learning curve will be steep if we are to succeed in throwing fossil fuels out the window and replacing them with green fuels in just one decade, says Dansk Energi's CEO, Lars Aagaard.

- But we believe it can be done. Denmark is not in the lead when it comes to converting electricity into hydrogen and then into fuels that can be used in heavy transport and industry. But we can still get there. This requires that we act quickly politically and adopt an ambitious strategy where the entire value chain is committed, he says.

Four key components

Among the 18 companies are, among others, Dansk Energi, Dansk Industri, Energinet, Ørsted, Haldor Topsøe, DSV Panalpina, SAS and Copenhagen Airport.

– For aviation and large parts of the heavy transport sector, the strategy for realizing a green transition is closely linked to the development of Power-to-X fuels. The technology is there, but sustainable commercialization and scaling up of production depends on us quickly getting the right political framework for both production and consumption, says Thomas Woldbye, CEO, Copenhagen Airport.

The proposed strategy contains four key components.

• A framework for an ambitious Power-to-X effort that ensures that Denmark's significant strengths within Power-to-X are utilized to make Denmark fossil-free, and contributes to the global green transition through the export of energy and technology. The ambition is to support at least an emission reduction of 2.5 million ton CO₂ in Denmark.
  
  
• A national track that kickstarts the Danish Power-to-X effort with the help of subsidies and regulation, and lays the structural foundation for full industrialization of the market. The focus is on the production of hydrogen and Power-to-X fuels to increase competencies and reduce costs, but equally to mature green demand.
   
• An international track that creates the framework for an international market where the value of green hydrogen is clear. A market that also pushes the demand for Power-to-X, so that the competitive situation for our industry and transport sector does not deteriorate and our future Power-to-X industry has a market to sell their products in.
   
• A proactive governance that ensures progress in the Danish effort. Power-to-X is an untouched area, and we cannot predict the development. It is the companies that must invest on both the production and consumption sides. They are the ones who have their hand on the stove but also their finger on the pulse. A clear governance structure must be established for how the business community is continuously involved and consulted in future adjustments to the Power-to-X strategy, and where the government ensures ongoing reporting on the strategy's implementation.

esl