Winners of Denmark’s first PtX tender to build over 280 MW of electrolysis capacity

The Danish Energy Agency has closed the first Power-to-X tender, revealing six winning project divided between four companies. The selected six projects will together build over 280 MW of electrolysis capacity.

The tender was launched in April and was open until September 1, 2023. Through the tender, Denmark made available DKK 1.25 billion (approximately €167.7 million) in state support for the production of Power-to-X in the form of green hydrogen.

The tender was held to procure hydrogen produced by using renewable energy sources and is part of Denmark’s goal to reach between 4 and 6 GW of electrolysis capacity by 2030 and its PtX strategy, released in 2021, according to which the country’s offshore wind resources provide good conditions for the production of green hydrogen, which requires large amounts of green electricity.

Only hydrogen that is produced from renewable energy sources and meets the EU’s documentation requirements for green PtX fuels was eligible for support.

The agency said there was a great interest in the tender with applications made for more than three times the allocated budget.

The winning companies and projects of the tender are Plug Power (Idomlund Denmark), European Energy (Windtestcenter Måde K/S), European Energy (Padborg PtX ApS), Electrochaea (Biocat Roslev) and European Energy (Kassø PtX Expansion ApS). The five winners have been awarded their entire offer, but as there was a remainder in the pool, HyProDenmark/Everfuel will also be offered a reduced offer, the agency said.

The six winning projects have bid with relatively different support needs an different sizes of their facilities. The awarded support to the winning projects will be paid out as a fixed price supplement over a 10-year period.

Following the selection of winning projects, a ten-day standstill period starts, after which the Danish Energy Agency and the projects will sign contracts on the condition that no complaints are received during the period.

Once contracts are concluded, the winners will have four years to build the facilities and put them into operation. Several projects expect that the electrolysis plants can be completed earlier and become ready for commissioning as early as 2026.

After the contracts have been concluded, the winners basically have four years to build the facilities and then put them into operation. Several of the projects expect, however, that the electrolysis plants can be completed earlier and ready for commissioning as early as 2026.