EC greenlights EUR-170m scheme for PtX support in Denmark

The European Commission (EC) today announced its approval, under EU State aid rules, of a EUR-170-million (USD 182.3m) scheme in Denmark to support Power-to-X (PtX) projects for the production of renewable hydrogen.

Through this measure, the Danish government plans to support the construction of 100 MW to 200 MW of electrolysis capacity to produce green hydrogen and derivatives such as ammonia, methanol and e-Kerosene. For the purpose of awarding the aid in the form of a 10-year direct grant, the state will open a competitive bidding process later this year.

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The Commission has determined that this measure “is necessary and appropriate” for the purpose of facilitating renewable hydrogen production, and has an “incentive effect”. At the same time, Denmark has made sure that the scheme has a limited impact on competition and trade within the EU by introducing sufficient safeguards.

Ultimately, the scheme will contribute to Denmark's efforts to cut greenhouse gas emissions by 70% by 2030 compared to the 1990 level and eventually achieve carbon neutrality by 2050.

(EUR 1 = USD 1.073)