DENMARK Trends and Developments Contributed by: Jakob Østervang, Peter Østergaard Nielsen, Anders Hørlyck Jensen and Tejs Degn Leth Ernst, Accura Advokatpartnerselskab
Eurowind Energy’s GreenLab Skive project is a prime example. The 45 MWh battery system will support frequency control and ancillary services for Energinet, enhancing the efficiency of the co-located solar and wind park. The project is expected to be operational by the end of 2025. In M&A, BESS is now a key factor in project valuation and marketability. Projects without BESS struggle to attract investors, especially if they lack strong PPAs. Otherwise, M&A activity reflects that of solar and onshore wind and is concentrated around distressed and early-stage projects, while mature assets are held as long-term investments. Power-to-X PtX technologies – such as green hydrogen, e-metha- nol and ammonia – are central to the long-term decar- bonisation of hard-to-electrify sectors. Yet despite their strategic importance, the market is currently in a state of pause rather than progress. Developers face significant challenges securing offtake agreements, which are essential for financing and execution. With- out clear demand signals, many large-scale projects remain stalled at the development stage. Infrastructure delays – such as the postponed Dan- ish hydrogen backbone networks – are compounding the problem. Until these systems are built, offtakers remain hesitant and developers struggle to justify investment. The result is a slowdown in project devel- opment and a cautious M&A environment. At the same time, the cost of producing green fuels remains prohibitively high. Green hydrogen, as an example, is still produced at prices far above fossil- based alternatives. This cost gap undermines project viability and deters private investment. Developers are therefore under pressure to rethink their business models, streamline decision-making and adopt cost- cutting strategies such as modularisation, digital opti- misation and green finance partnerships. Despite these challenges, there are regulatory tail- winds that could unlock future demand. The EU’s FuelEU Maritime Regulation mandates a gradual reduction in the greenhouse gas intensity of fuels used by ships, starting in 2025 and reaching 80% by 2050.
Similarly, the ReFuelEU Aviation Regulation requires fuel suppliers to blend increasing amounts of sustain- able aviation fuel (SAF), including e-fuels, starting at 2% in 2025 and rising to 70% by 2050. These poli- cies are expected to create stable offtake markets and improve the investment case for PtX. In the absence of large-scale commercial certainty, demonstration-scale projects are emerging as a prag- matic path forward – and are being successful, includ- ing a few projects in Denmark. These allow for techni- cal validation, stakeholder engagement and gradual scaling – while mitigating technology and market risk. An example is European Energy and Mitsui’s Kassø e-methanol facility, inaugurated in May 2025. It is the world’s first large-scale commercial e-methanol plant, producing up to 42,000 tonnes annually by combining green hydrogen from a 52 MW electrolyser with bio- genic CO₂ from local sources. The facility has secured offtake agreements with Maersk, Novo Nordisk and the LEGO Group, demonstrating real market traction across shipping, healthcare and manufacturing. Mae- rsk will use the e-methanol to fuel the Laura Mærsk, the world’s first methanol-powered container vessel, while LEGO and Novo Nordisk will use it to replace fossil methanol in selected product lines. Looking ahead, the convergence of energy security, digital infrastructure, and industrial decarbonisation is expected to reignite interest in PtX. However, until offtake certainty improves and infrastructure bottle- necks are resolved, M&A activity will remain selective and opportunistic. The market is not dead – but it is Geothermal energy is gaining renewed traction in Denmark, driven by technological breakthroughs, supportive regulation and the need for stable, renew- able baseload heat. While the sector remains capital- intensive and geologically complex, recent develop- ments suggest a shift toward scalable deployment and increased investor interest. waiting for alignment. Geothermal Energy The most advanced player is Innargi, backed by A.P. Møller Holding, which is developing large-scale geo- thermal heating projects in Aarhus and several other
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