Danish Strategy for Hydrogen and Fuel Cells - HY-CO Home

provide pollution-free transportation. As Denmark’s production of hydrogen
increases and hydrogen-driven vehicles are developed, society’s costs of securing
a reliable supply of oil for the transport sector will decrease. A higher degree of
self-sufficiency will make Denmark less vulnerable to oil market fluctuations.
As far as electricity is concerned, the increasing but unpredictable amount of wind
power presents a challenge in terms of energy supply. “Excess” or “cheap”
electricity from wind power can be used to produce hydrogen by electrolysis and
storage of the hydrogen with a view to being used in “expensive” periods. This
can potentially be an important tool in ensuring stable market conditions and
increasing the flexibility of the electricity production.
Business perspectives – a new framework for demonstration
The use of financial instruments in the energy market can help stimulate R&D.
Energy savings and wind power are good examples in Denmark. Financial
instruments are not R&D strategies as such, but they will obviously have an
impact on R&D activities in the desired direction. In Denmark, the use of
different levels of tax on waste and energy play an important role in the
introduction and use of new energy technologies. The same is likely to happen in
connection with the introduction of hydrogen.
Subsidy of a national expansion of wind power and biomass energy was
introduced in the early stages, one of the results of this considerable consumerpaid
PSO subsidisation. A new approach has been proposed for the introduction
of hydrogen and fuel cells. Instead of nationwide implementation in the early
days, an efficient organisational framework should be put in place to promote
strong partnerships between the private sector, authorities and research and
educational institutions. This framework can be combined with a small number of
regional demonstration and development environments that act as development
workshops. These workshops would bring together diverse competencies and
promote seamless technological solutions. In addition to providing support for the
partnerships and demonstration and development environments, the framework
should also help attract as much capital as possible from industrial investors,
venture capital, etc.
The need for pilot and demonstration projects involves not only the testing of
individual plants or technologies but also the testing of the interplay between
various technologies and testing of various economic mechanisms.
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