DENMARK Law and Practice Contributed by: Jakob Østervang, Peter Østergaard Nielsen, Anders Hørlyck Jensen and Tejs Degn Leth Ernst, Accura Advokatpartnerselskab
1.4 Energy and Infrastructure Projects Denmark’s major planned energy and infrastructure projects include large-scale offshore wind farms (eg, Thor), national grid upgrades, and the development of a hydrogen backbone from Esbjerg to the German border, expected to be operational by 2030. Carbon capture and storage (CCS) is also advancing, with multiple projects competing for funding under the DKK28.7 billion CCS Fund. In biomethane, most activ- ity involves expansion of existing plants rather than greenfield development, driven by certificate profit- ability and the phase-out of legacy subsidies. The project mix is overwhelmingly renewable. Wind, solar, biomethane and CCS dominate new capacity, while fossil-based projects are minimal and largely transitional. Denmark aims for 100% renewable elec- tricity by 2030, and current infrastructure plans reflect this ambition. 2. Establishing and Exiting Early- Stage Companies in the Energy and Infrastructure Industry 2.1 Establishing and Financing a New Company Establishing and financing early-stage companies in Denmark’s energy and infrastructure sector requires careful alignment with regulatory frameworks, cer- tificate schemes, and infrastructure readiness. Key considerations include securing offtake agreements, navigating permitting processes, and structuring financing – often through equity or green bonds, as debt remains limited for standalone technologies such as BESS and PtX. Ventures must also address grid access, technology risk, and long development lead times. Such ventures are relatively common, especially in biomethane, CCS, and geothermal, where demon- stration-scale projects are used to validate business models and attract strategic investors. Public funding and EU support schemes play a critical role, but com- mercial viability depends on integration potential and long-term policy stability.
2.2 Liquidity Events In Denmark’s energy and infrastructure sector, early- stage ventures often pursue liquidity through strategic partnerships, partial divestments, or integration into larger platforms. Rather than traditional IPOs, exits typically occur via acquisitions by utilities, infrastruc- ture funds, or industrial players seeking vertical inte- gration or certificate access. Founders and investors should be aware that timing is critical. Liquidity depends not only on technical pro- gress but also on policy cycles, subsidy windows, and infrastructure readiness. Projects must be structured to survive long development lead times and regulato- ry uncertainty. Investors increasingly favour ventures with modular design, flexible offtake models, and clear ESG reporting. Public-private alignment – such as long-term heat or carbon credit contracts – is often essential to unlock financing and exit opportunities. Legal clarity around permitting, grid access, and state involvement is also crucial for successful transactions. Spin-offs are relatively common in the energy and infrastructure sectors in Denmark. The key drivers behind considering a spin-off in these industries include the following. • Companies may spin off non-core assets or divi- sions to concentrate on their primary business operations and improve overall efficiency. • Spin-offs can help companies comply with regula- tory requirements. • By creating a separate entity, companies can unlock value for shareholders, as the new entity may be better positioned to attract investment and grow independently. • Spin-offs can facilitate strategic partnerships or joint ventures. 3. Spin-Offs 3.1 Trends: Spin-Offs • Smaller, more focused entities can be more agile and innovative, which is crucial in the rapidly evolv- ing energy sector.
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