New report from the CIP Foundation: This is how a Danish hydrogen infrastructure benefits Denmark, the Danish economy, and the green transition of Europe
With a new roadmap for an integrated hydrogen network, the CIP Foundation is now showing the way for how hydrogen can become one of Denmark’s largest exports, worth 1,300 million EUR per year.
Denmark is in a unique position to assist Northern Europe in reducing CO2 emissions in the heavy industry, transport and agriculture in the coming decades. The production of green hydrogen and Power-to-X fuels will be decisive and have the potential to reduce global CO2 emissions by 1/5 in 2050.
Therefore, the CIP Foundation is now presenting a rollout plan for an integrated hydrogen infrastructure in Denmark with interconnectors to relevant neighboring markets. If Denmark is to retain its green leadership position, action is required now, is the conclusion from the CIP Foundation.
“The climate cannot wait any longer, and it is our generation’s choice whether Denmark will still remain the green pioneer country that we have prided ourselves on being for years. Hydrogen will play a key role in Europe’s green transition, and in Denmark we have exceptionally good conditions for producing green hydrogen in the North Sea and the Baltic Sea at competitive prices. Our neighbouring countries will be queuing up to buy Danish hydrogen, and with the right infrastructure we have a green export adventure in the order of 13,500 million EUR per year. The hydrogen exports will make an important contribution to financing the welfare society of the future. Therefore, it is the CIP Foundation’s clear recommendation that we get the concrete pipe connections and necessary framework conditions adopted as soon as possible,” says Anders Eldrup, board member of the CIP Foundation.
The biggest construction project in Danish history
The CIP Foundation is proposing an infrastructure based on three legs, which together ensure stable production and energy supply: the North Sea, Bornholm Energy Island, and the Western Danish backbone. The potential for renewable energy in the North Sea alone is so great that the CIP Foundation recommends establishing two dedicated hydrogen islands which, together with the government-decided energy island, can account for 65 percent of Denmark’s total hydrogen production.
The Danish production of hydrogen will already exceed the domestic consumption in 2030, and here an established hydrogen infrastructure in Western Denmark will be able to contribute with an energy export of up to 1,300 million EUR per year. Therefore, according to the CIP Foundation, the interconnectors to foreign countries play a key role in the roadmap.
“The development of Denmark’s hydrogen infrastructure is a huge project, and it is crucial that it is connected to other countries that can purchase our hydrogen. Our roadmap proposes the largest construction project in Danish history, and it is important that the dimensioning can accommodate future needs from the start – not least in terms of export opportunities. It requires flexible frameworks at the start, and then the state needs to take on part of the risk involved in investing in collective hydrogen infrastructure development with a long payback period,” says Charlotte B. Jepsen, managing partner in CIP Foundation.
The costs for a full development of a coherent hydrogen infrastructure will be around 17,500 million EUR over the next 15-20 years.
The CIP Foundation’s recommendations to a roadmap for a Danish hydrogen infrastructure:
- Denmark should establish a green hydrogen production and invest in a coherent hydrogen infrastructure.
- The expansion process must focus on pipelines to neighbouring countries and offshore pipelines and step up the cooperation with international infrastructure operators.
- The pipelines must be designed to be big enough for the needs of the future.
- Denmark needs a flexible framework from the outset and supportive conditions where the State assumes some of the risk by supporting a common hydrogen infrastructure with a long pay-back period.
- The coherent hydrogen infrastructure will become Denmark’s largest construction project spanning two decades and amount to EUR 17.5 billion and with hydrogen pipelines extending more than 1,300 km.
- The development of the hydrogen infrastructure must be a staged process that is capable of standing alone and is independent of future decisions (no-regret decisions). The more uncertain part of the development must be qualified in tandem with the market development.
- Denmark must start making the decisions for the future interconnections and structuring approval processes etc. so as not to waste time unnecessarily on procedures.
The CIP Foundation’s roadmap for a hydrogen infrastructure in Denmark has been created on the basis of extensive in-depth analysis and mapping of the necessary regulation. The roadmap specifies costs and stages for a concrete implementation, to ensure the development of the necessary hydrogen infrastructure in the Danish energy system is cost-effective and benefits the whole of society.
For comments on the report please contact the CIP Foundation’s managing partner, Charlotte Jepsen (+45 4193 3198, ).