The Government's PtX strategy plans new regulatory measures to secure a proper framework for establishing, operating and applying hydrogen infrastructure and to allow the conversion of existing natural gas pipes to transport of hydrogen.
Market players have generally demanded development of infrastructure that may support the scaling of PtX technology in Denmark and the export of hydrogen to other countries. In 2021, Energinet and The Danish Energy Authority arranged a dialogue with market parties, in which 19 market players indicated their interest in establishing a Danish hydrogen infrastructure.
In its PtX proposal of 15 December 2021, the Government introduces a number of initiatives that focus on the development of infrastructures to promote the use of PtX technology in Denmark. These initiatives include removing regulatory barriers and ensuring that only unambiguous rules for establishing infrastructure, security, etc., will be implemented.
Energinet and Evida to own and operate hydrogen infrastructure
By storing hydrogen in pipelines and natural gas storage facilities, it is possible to store hydrogen for whenever the energy production in the photovoltaic and wind industries cannot match the energy consumption.
The Government has proposed that the regulatory framework of Energinet and Evida, including applicable articles of association, be amended to the effect that both enterprises may own and operate hydrogen infrastructure. This will enable Energinet and Evida to invest funds in the development of hydrogen infrastructure projects.
The Government anticipates reaching a decision this year on how to structure the Danish hydrogen market in terms of ownership and operation.
Direct grid connection between PtX plants and RE production
The production of green hydrogen requires huge volumes of green electricity. Accordingly, the party setting up a PtX station must be allowed to apply for permission to establish a direct grid connection between the PtX station and the wind or photovoltaic farms. Once the PtX station no longer needs to draw electricity from the collective electric grid, the costs of expanding and reinforcing the collective electric grid are expected to be reduced.
Permission to establish direct grid connection must be granted upon application, based on a specific assessment subject to defined criteria that support socio-economic principles.
The financing of the direct grid connection must be settled by the party setting up the PtX station – the costs of which are expected to be substantial.
The Government intends to analyse the options and requirements of including ports as green transport hubs in the process.
This initiative must be seen in context with the Infrastructure Plan 2035 agreed by the Danish political parties in June 2021. Under the Infrastructure Plan 2035, DKK 50 million was dedicated to a port scheme. One of the objects of this scheme is to support the establishment of infrastructure for alternative fuels such as onshore power systems. The port scheme will open for applications in 2022. The Danish Transport Authority will be in charge of managing the scheme's funds and the applications submitted.
Bech-Bruun's advisory services include consultancy on renewable energy projects, connection to and expansion of infrastructure as well as other important aspects of PtX projects, such as EIAs and environmental issues.