popular articles

Denmark Adjusts Its Strategy for Offshore Wind and Green Hydrogen

Denmark, a pioneer in offshore wind energy, is revising its model after the failure of a 3 GW tender. At the same time, the country is accelerating its green hydrogen infrastructure to strengthen its energy ties with Germany.

Please share:

Denmark has always been a reference in the offshore wind sector, thanks to its regulatory framework and industrial expertise. However, the recent failure of a 3 GW tender highlights market challenges that require rapid adaptation. Simultaneously, the country is betting on green hydrogen exports, with interconnection projects targeting Germany.

A Canceled Tender Due to Lack of Bidders

The tender for the construction of 3 GW of offshore wind energy was canceled due to the absence of bidders. Several factors explain this situation. First, the rising costs of raw materials, particularly steel and rare metals, have made projects less profitable. Additionally, global logistical tensions have complicated supply chains, slowing investments.

The tender framework was also deemed too restrictive. Unlike other markets, no direct financial incentives were offered to offset risks. Moreover, developers had to bear the cost of grid connection, adding to the financial burden of the projects. Finally, uncertainty about electricity prices discouraged investors, making the profitability of these parks more uncertain.

A New Framework Planned for 2025

In response, the Danish government is working on a revised auction framework for 2025. Among the proposed changes are the reintroduction of partial subsidies, state coverage of part of the grid connection costs, and greater flexibility in project commissioning timelines.

Authorities also aim to strengthen dialogue with industry players to align future tenders with market realities. By offering greater visibility to sector stakeholders, Denmark hopes to attract major developers once again and maintain its leadership in offshore wind energy.

Green Hydrogen as a Strategic Focus

At the same time, Denmark is accelerating the development of green hydrogen. Leveraging its substantial offshore wind potential, the country plans to use electricity from offshore parks to power electrolyzers, enabling the production of decarbonized hydrogen.

This energy vector presents several advantages: it could be used to decarbonize industries such as fertilizer and chemical production or power heavy transport vehicles. Hydrogen exports are also central to Denmark’s ambitions, with Germany—a country seeking alternatives to natural gas—representing a key market.

A Hydrogen Export Project to Germany

Denmark plans to invest in a green hydrogen export network to Germany. This includes adapting existing infrastructure, particularly gas pipelines, to make them compatible with hydrogen transport.

Public financial support is being considered to facilitate these investments. Additionally, a regulatory framework must be defined in collaboration with Germany to ensure harmonization of standards and technical requirements.

Challenges for Industrial Players

Industrial players in the wind and hydrogen sectors are closely monitoring these developments. They advocate for long-term visibility, with a regular auction schedule and stable regulatory conditions. A clearer roadmap would help secure investments and support the growth of a competitive sector.

Denmark is thus adjusting its strategy to maintain its leadership while responding to the new economic and industrial realities of the sector.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Danish group Ørsted halts development of its Hornsea 4 offshore wind project in the UK, citing financial and operational risks that no longer guarantee returns for shareholders.
Danish wind turbine manufacturer Vestas posts an unexpected net profit despite tariff tensions and confirms its 2025 outlook.
Danish wind turbine manufacturer Vestas posts an unexpected net profit despite tariff tensions and confirms its 2025 outlook.
Clearway Energy strengthens its presence in Washington State with the purchase of the 137 MW Tuolumne wind project, securing a 15-year power purchase agreement with Turlock Irrigation District.
Clearway Energy strengthens its presence in Washington State with the purchase of the 137 MW Tuolumne wind project, securing a 15-year power purchase agreement with Turlock Irrigation District.
Danish developer Ørsted has finalised the sale of 24.5% of its stake in the UK’s West of Duddon Sands wind farm to funds managed by Schroders Greencoat for GBP456.1mn ($571mn).
Danish developer Ørsted has finalised the sale of 24.5% of its stake in the UK’s West of Duddon Sands wind farm to funds managed by Schroders Greencoat for GBP456.1mn ($571mn).
The Princess Elisabeth energy island project advances with the placement of two caissons, launching a key phase of marine civil engineering off the Belgian coast.
Equinor condemned the mid-April suspension of its offshore wind farm Empire Wind 1 near New York, a $2.5bn project halted by U.S. authorities, labelling the move illegal.
Equinor condemned the mid-April suspension of its offshore wind farm Empire Wind 1 near New York, a $2.5bn project halted by U.S. authorities, labelling the move illegal.
Despite turbines priced 30 to 40% lower, Chinese manufacturers struggle to overcome credibility barriers hindering their progress in the European wind sector.
Despite turbines priced 30 to 40% lower, Chinese manufacturers struggle to overcome credibility barriers hindering their progress in the European wind sector.
Greenvolt Power has finalised the sale of the Pelplin wind farm in Poland to Enea Nowa Energia for €174.4mn, reinforcing its large-scale renewable asset monetisation strategy.
Greenvolt Power has finalised the sale of the Pelplin wind farm in Poland to Enea Nowa Energia for €174.4mn, reinforcing its large-scale renewable asset monetisation strategy.
EnBW’s He Dreiht project reaches a major milestone with the installation of the first 15 MW Vestas turbine, marking progress in the construction of the 960 MW wind farm.
RWE has started work on a new 22.8 megawatt onshore wind farm in Papenhagen, northeastern Germany, after winning a tender from the Federal Network Agency.
RWE has started work on a new 22.8 megawatt onshore wind farm in Papenhagen, northeastern Germany, after winning a tender from the Federal Network Agency.
China has reached a historic energy milestone with wind and solar capacity now exceeding that from thermal sources, amid an acceleration of new installations.
China has reached a historic energy milestone with wind and solar capacity now exceeding that from thermal sources, amid an acceleration of new installations.
Mainstream Renewable Power sold its entire Colombian portfolio to Celsia, marking its exit from the country to focus operations on three strategic markets.
Mainstream Renewable Power sold its entire Colombian portfolio to Celsia, marking its exit from the country to focus operations on three strategic markets.
Ocean Winds has completed the installation of 32 Biohut modules on a floater of its EFGL pilot project, marking a global first for floating offshore wind incorporating artificial habitats for biodiversity.
A recently published study shows that over 50 Connecticut companies are actively participating in offshore wind projects, with growth potential for 450 other companies in the region.
A recently published study shows that over 50 Connecticut companies are actively participating in offshore wind projects, with growth potential for 450 other companies in the region.
US authorities have ordered the halt of Equinor's Empire Wind 1 offshore wind project located off New York, citing insufficient environmental analysis according to the Biden administration. Construction had been underway since 2024.
US authorities have ordered the halt of Equinor's Empire Wind 1 offshore wind project located off New York, citing insufficient environmental analysis according to the Biden administration. Construction had been underway since 2024.
Belgian group DEME has signed an agreement to acquire Norway’s Havfram for €900 mn, consolidating its fleet and global presence in the offshore wind market.
Belgian group DEME has signed an agreement to acquire Norway’s Havfram for €900 mn, consolidating its fleet and global presence in the offshore wind market.
Developer Energiequelle has secured five projects totalling 143 MW through a national onshore wind tender, expanding its footprint across four German federal states.
The United States recorded its lowest volume of wind installations in a decade in 2024, according to Wood Mackenzie data, due to tax timing effects and persistent regulatory uncertainty.
The United States recorded its lowest volume of wind installations in a decade in 2024, according to Wood Mackenzie data, due to tax timing effects and persistent regulatory uncertainty.
Three European energy sector players are partnering to develop an offshore wind farm near Saaremaa, reinforcing Estonia’s strategic position in the Baltic region.
Three European energy sector players are partnering to develop an offshore wind farm near Saaremaa, reinforcing Estonia’s strategic position in the Baltic region.
RWE has signed a 20-year electricity supply agreement with Sanofi, committing to deliver 21 GWh annually from a wind farm located in the Marne region.
RWE has signed a 20-year electricity supply agreement with Sanofi, committing to deliver 21 GWh annually from a wind farm located in the Marne region.
The Montpellier court has ordered a one-year suspension of the Bernagues wind farm, finding Énergie Renouvelable du Languedoc responsible for the death of a golden eagle, a protected species, in January 2023.
ScottishPower Renewables awards HSM Offshore Energy the design and construction of the offshore substation and its foundation for the East Anglia TWO wind farm off the Suffolk coast.
ScottishPower Renewables awards HSM Offshore Energy the design and construction of the offshore substation and its foundation for the East Anglia TWO wind farm off the Suffolk coast.
Ocean Winds is leading the installation of 61 offshore wind turbines off the Vendée coast, with up to 600 workers mobilised in Saint-Nazaire and commercial commissioning targeted by the end of November.
Ocean Winds is leading the installation of 61 offshore wind turbines off the Vendée coast, with up to 600 workers mobilised in Saint-Nazaire and commercial commissioning targeted by the end of November.
Chantiers de l’Atlantique invests €100 mn to expand its production capacity in offshore wind, a strategic segment now central to its industrial recovery.
Chantiers de l’Atlantique invests €100 mn to expand its production capacity in offshore wind, a strategic segment now central to its industrial recovery.

Advertising