Danish Energy Agency Works on World’s First Power-to-X Tender

To address the schedule and framework for the world’s first Power-to-X (PtX) tender in Denmark, the Danish Energy Agency (DEA) will soon conduct a stakeholder conference. The DEA has now formed a secretariat for Power-to-X in addition to creating a PtX task force. The said tender is poised to be the world’s first power-to-X tender.

A tender will be issued to buy green hydrogen and clean fuel products manufactured from renewable energy sources such as offshore wind, and DKK 1.25 billion (EUR 168 million) will be made available to support the execution of these projects.

Both the political agreement reached in March and the nation’s Power-to-X strategy, both of which were published in December of last year, laid out this information.

As part of this agreement and Denmark’s objective to reach between 4 and 6 GW of electrolysis capacity by 2030, the PtX task force and secretariat will be created, as well as stakeholder discussions will be held.

The Danish Energy Agency will outline the timeline, procedure, and framework for the tender to the business community and prospective bidders during the upcoming stakeholder meeting on the Power-to-X tender.

The industry and prospective bidders will have the opportunity to ask questions or offer comments on the tender conditions at the meeting, after which the Agency will present the framework and the preliminary bidding conditions.

Denmark will conduct a market-based tender by the terms of the political agreement, aiming for the most cost-effective and budget-friendly hydrogen production.

Only hydrogen that satisfies the documentation requirements for green PtX fuels set forth by the EU and is produced using renewable energy sources is eligible for funding.

When the money is depleted, the lowest bidders on price supplements will be chosen as the winners of the tender. The subsidy will be paid as operating assistance based on the amount of green hydrogen produced.

The Danish Energy Agency established a Power-to-X task force following the political agreement’s signature last spring. As a result of that task force, the Danish Energy Agency has since established a PtX secretariat, which will serve as a central hub for queries about Power-to-X.