Everfuel-Hy24 JV inks final agreement on increased Danish PtX tender award

A joint venture formed by Denmark-based green hydrogen company Everfuel and Hy24, a manager of the world’s largest clean hydrogen infrastructure fund, has signed the final agreement with the Danish government on an increased award in the country’s first Power-to-X (PtX) tender.

On November 17, the Danish Energy Agency revealed a new decision regarding the winners of the PtX tender, offering the increased grant of DKK 211 million (€28,3 million) to Everfuel’s JV.

The JV announced the signing of the final agreement on the increased award on December 15.

“Echoing previous statements, the Danish PtX tender is a confirmation of the government’s commitment to unfold the national hydrogen production and export potential. We are very pleased with the tender process and the result for our JV. The outcome further supports Everfuel and Hy24s joint ambition of commercialising green hydrogen at scale,” said Jacob Krogsgaard, Founder and CEO of Everfuel.

The tender’s built-in subsidy is provided as support for operating expenses and is recognized per kilogram of green hydrogen produced. The subsidy will run for ten years and is dependent on the operational performance of the project.

To remind, the tender was launched in April and was open until September 1, 2023. Through the tender, Denmark made available DKK 1.25 billion (approximately €167.7 million) in state support for the production of Power-to-X in the form of green hydrogen.

The tender was held to procure hydrogen produced by using renewable energy sources and is part of Denmark’s goal to reach between 4 and 6 GW of electrolysis capacity by 2030 and its PtX strategy, released in 2021, according to which the country’s offshore wind resources provide good conditions for the production of green hydrogen, which requires large amounts of green electricity.