A single developer sweeps 80% of budget from Denmark’s first green hydrogen and derivatives tender
The six winning projects will be awarded fixed payments for ten years, as long as they are up and running by late-2027
The Danish government has today announced six projects nearly 280MW in combined capacity have won subsidies from its first DKK 1.25bn ($177m) tender for green hydrogen and derivatives.
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This includes a combined DKK 1bn towards three projects by a single developer, European Energy, accounting for more than 80% of the cash awarded.
Once they have accepted the subsidies, the developers have four years to start operations, although the Danish Energy Agency anticipates most of these to start production sooner.
Subsidy awarded
Company / Project
Location
Total subsidy
Capacity
DKK 9.30/GJ
Plug Power
Holstebro
DKK 107,673,447
100MW
DKK 40/GJ
European Energy / Vindtestcenter Måde
Esbjerg
DKK 43,994,973
9MW
DKK 46/GJ
European Energy / Padborg PtX
Padborg
DKK 910,800,000
150MW
DKK 59.9998/GJ
Electrochaea / Biocat Roslev
Rybjerg
DKK 71,279,762
10MW
DKK 67/GJ
European Energy / Kassø PtX Expansion
Rødekro
DKK 81,879,549
10MW
DKK 67.4998/GJ
HyproDenmark (Everfuel & Hy24 JV)*
Fredericia
Rest of budget
Undisclosed
Source: Danish Energy Agency
The largest of these is European Energy’s 150MW green hydrogen-based e-fuels plant in Padborg, which received a ten-year fixed subsidy of DKK 46/GJ (equivalent to DKK 5.52/kg or $0.78/kg), or a total of DKK 910m from the budget.
European Energy has also received subsidies towards smaller scale projects, such as a 9MW second phase of its green hydrogen project in Måde and a 10MW expansion of its planned, now-60MW e-methanol facility in Kassø, which is set to be opened next year with offtake lined up from shipping giant Maersk, pharmaceuticals firm Novo Nordisk, toymaker LEGO, and retailer Circle K.
More than 675MW was bid into the auction, with the total subsidies requested more than triple the tender’s budget. However, all of the winning bids were below the DKK 70/GJ ($1.18/kg) threshold necessary to close the auction in one round.
While the tender had a nominal bid ceiling of DKK 120/GJ ($2.03/kg), the Danish government had set the lower threshold in an effort to maximise the number of projects getting a subsidy, with any higher bids triggering the split of the auction and its budget into two rounds.
However, one of the winning projects — which is being developed by a joint venture between H2 producer Everfuel and hydrogen-focused fund Hy24 — was only offered a subsidy of around DKK 34m for a part of the plant’s as-yet undisclosed capacity.
Everfuel has given no comment on whether it will accept or decline the offered subsidy after the ten-day consideration period, nor any further detail on the project that was bid into the auction process.
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