Port capacity must be large enough to accommodate the deployment of offshore wind and PtX

Interview

Offshore wind and PtX deployment makes new demands on port capacity at Danish ports. The CIP Foundation aims to identify these demands in a comprehensive analysis. Member of the Board Christina Grumstrup Sørensen says that a holistic approach is paramount.

The port capacity of Danish ports is instrumental in pulling off the ambitious plan for a twenty-fold increase in Danish offshore wind capacity. For this reason, the CIP Foundation will instigate a comprehensive analysis to identify existing port capacity and assess this against the needs and opportunities of Danish offshore renewable energy deployment.

It goes without saying that port capacities are crucial for the logistics as we embark on our journey to expand the installed capacity in the North Sea and the Baltic Sea. Ports cannot become bottlenecks for the deployment of renewable energy at sea, and we have to ensure the greatest possible job and value creation for Denmark from growth in offshore wind power in the region. Efficient ports and lucrative investments must go hand in hand, says Christina Grumstrup Sørensen, senior partner in CIP and member of the board of the CIP Foundation.

In April this year, Christina Grumstrup Sørensen was appointed chair of the government’s partnership for the development of Danish ports with focus on green growth. The partnership is an inter-ministerial initiative between the Ministry of Industry, Business and Financial Affairs, the Ministry of Transport, and the Ministry of Climate, Energy and Utilities.

I’m delighted to be able to chair this partnership. We’ll be collecting input from all the players in the area and hearing about their needs. I’m also very pleased that the CIP Foundation will provide an important analysis of what is required of Danish ports in practice with regard to the green transition. This is the essence of the Foundation’s purpose, says Christina Grumstrup Sørensen. She explains further: The significance of Danish ports for the deployment of renewable energy is just one area of many that the partnership will be looking into. A holistic approach is paramount, so we must look at transitioning shipping as well as passenger and freight transport and fisheries. And there’s also the latest requirements on ports in light of the current security situation.

Division of responsibilities between ports

Danish waters currently boast a total of 2.3 GW installed offshore wind power capacity. The ambition under the Esbjerg Declaration and the Marienborg Declaration is to boost offshore wind to 65 GW in the North Sea and 19.6 GW in the Baltic Sea by 2030.

These ambitious targets will require expansion of port capacities to accommodate shipping wind turbine components such as towers, blades, turbine houses, etc. Offshore wind turbines have become ever larger. Today, only the ports in Esbjerg, Grenå, Odense and Rønne have capacity to deal with the largest components.

A key element in work by the partnership on ports is to come up with ideas for financing models. Expansion of port capacities is a long-term infrastructure investment with a long payback period. Attractive financing models are therefore crucial to attract the necessary capital.

The approach needs to be holistic, also in terms of geography, according to Christina Grumstrup Sørensen. Danish ports will be in competition with non-Danish ports for the role of shipping hub for offshore wind farms in both the North Sea and the Baltic Sea. Therefore, it will be far more constructive if, instead of having to compete, Danish ports agree on a division of responsibilities.

Several of our most important ports already differ in what they can offer. When it comes to offshore wind deployment, it’s not necessary for all ports to be able to accommodate all tasks. It will all require planning and coordination, says Christina Grumstrup Sørensen.

Workplaces and growth in port cities

Esbjerg is a good example of how port-related activities from renewable energy deployment can have an enormous economic impact. From being a major fishing port, Esbjerg became the leading Danish offshore port, first with oil and gas in the 1970s and 1980s, and since then as a shipping and servicing hub for offshore wind farms, and much more.

Port capacity expansion is a key element in the green transition, especially for offshore wind deployment, but also for PtX and subsurface carbon storage. Moreover port capacity expansion is an important economic engine to drive growth and employment in port cities and communities. Our goal is for our analyses to contribute to intelligent expansion of our ports, so that we can reap the best possible benefits for society, Christina Grumstrup Sørensen concludes.