Denmark launches 6GW offshore wind tender with an eye on production of green hydrogen and e-fuels – Hydrogen Insight

Denmark has launched its largest ever offshore wind tender, which it believes could lead to 100% renewable electricity in the country, as well as providing additional power for green hydrogen and its derivatives, such as ammonia and synthetic aviation fuel.

The government is offering 6GW of offshore wind capacity at six sites around the country, with the possibility for developers to overplant in their zones to establish up to 10GW or more.

With turbines in the hundreds, we are arming ourselves against Putins black gas, and today Denmark has come closer to becoming Europes green powerhouse, said climate and energy minister Lars Aagaard.

When the turbines spin, we can cover all of Denmarks power consumption with green power and we can produce hydrogen and green fuels for ships and aircraft.

However, the tender offers no subsidies to winning developers, which would have to give the Danish state a 20% ownership stake in their projects, as well as providing an annual concession payment to the government for 30 years.

In its announcement of the tender, the Danish Energy Agency said that the possible expansion to 10GW could potentially mean green electricity corresponding to the consumption of more than 10 million Danish and European households, although the green electricity could also be used for hydrogen or other Power-to-X products to replace fossil fuels.

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Gigawatt-scale offshore wind farms potentially offer economies of scale for green hydrogen developers, however, offshore wind remains one of the most expensive forms of renewable energy, even though costs have come down massively in recent years.

Projects could theoretically also be eligible for EU subsidies through the European Hydrogen Bank, but that would mean they would have to win two auctions.

Denmark foresees at least 6GW of offshore wind being installed at six locations by the end of 2030: three in the North Sea, 1.8-2.2GW in the Kattegat, and 1GW in the Baltic Sea (see map above).

Each 1GW of offshore wind is expected to require about DKr16bn ($2.3bn) of investment excluding hydrogen-related equipment such as electrolysers.

The country currently has an installed offshore wind capacity of 2.7GW, which is scheduled to rise to 3.7GW in 2027, when the Thor project currently under construction in the North Sea is due to be completed.

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Denmark launches 6GW offshore wind tender with an eye on production of green hydrogen and e-fuels - Hydrogen Insight