Winners announced of Denmark's first-ever PtX tender

The Danish Energy Agency has concluded the country's first Power-to-X (PtX) tender and has revealed the six projects that will win state aid.

Four companies are behind the six winning projects, which will be responsible for adding 280MW electrolysis capacity in Denmark.

The winning projects are Plug Power Idomlund Denmark, European Energy/Vindtestcenter Måde K/S, European Energy/Padborg PtX ApS, Electrochaea/Biocat Roslev and European Energy/Kassø PtX Expansion ApS, and HyProDenmark/Everfuel.

The winning projects have bid with different support needs and different electrolysis capacities. The lowest subsidy price is from the Plug Power Idomlund Denmark project with a price of 9,3DKK ($1,3) pr. GJ green hydrogen produced.

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The bidding companies have applied for more than four billion DKK (approximately $565 million), with the support to be given as a fixed subsidy price over a period of 10 years.

DEA deputy director Martin Hansen commented on the results: “The DEA highly appreciates the great interest for the Tender. This is the first time we get an indication of the need for support to green hydrogen, and it is a strong signal from the market that so many bids are below 70 DKK/GJ. It is good for the competition in the industry and for the green transition.

"This is an industry in the making and we are happy to be able to help the industry along with these funds.”

The tender opened to bids in April 2023. Now that the winners have been announced, the DEA will sign contracts with the winners after which the winning projects will have four years to build their electrolysis plants.

PtX

PtX refers to technologies that produce fuels, chemicals and materials based on green hydrogen produced through electrolysis.

According to the DEA, PtX technology and the production of green hydrogen is of critical importance to Denmark's energy transition and to meeting decarbonisation targets, especially in hard-to-abate sectors such as shipping and heavy transport.

In Denmark, the DEA states that several companies are ready with technology and expertise across the PtX value chain. Also, as interest in green hydrogen and PtX grows across Europe, more business and export opportunities are likely to open up for Denmark.