Revoked permit could delay green H2 project in Denmark

Market: Electricity, Hydrogen
11/07/23

The cancellation of an environmental permit granted to Denmark's 250MW Aflandshage offshore wind project, developed by utility Danish Hofor, could delay the commencement of a connected renewable hydrogen project.

Denmark's Energy Complaints Board withdrew the permit, which had been granted by the Danish Energy Agency less than a year ago, and notified Hofor of the decision last week. According to Hofor, the decision was made because of a "changed practice by the authorities regarding the counting of bats".

The Aflandshage offshore wind farm is scheduled to provide renewable power for the Green Fuels for Denmark project (GFDK), led by utility Orsted, which envisages production of green hydrogen and e-fuels for transport.

Hofor's wind and energy trade manager Jesper Pedersen told Argus that "the consequences for the project are still unknown" and quick assessment of the situation is difficult at the moment due to summer break in Denmark. Hofor is in talks with authorities to ensure "that a possible delay will be minimised as much as possible", Pedersen said.

"Right now we still have a lot of unanswered questions on what it would take to make the necessary adjustment to the environmental assessment," Pedersen said. The firm had previously discussed the impact of the project on bats, it said, and had "otherwise had a good, ongoing dialogue about the environmental impact assessment," according to Pedersen.

Up until the revoked order, wind operations at Aflandshage had been due to start in 2026. Output from the plant will be used to power the first two phases of GFDK, which is expected to utilise up to 300MW electrolyser capacity by 2028-29, according to Orsted.

Once all phases are completed, estimated by 2030, GFDK could employ a total electrolyser capacity of 1.3GW.

Orsted's head of Power-to-X Lars Hansen said the company is working closely with Hofor on the issue and hoping "for a swift decision so that both of these large energy projects can move forward".

Last December, GFDK received 600mn Danish krone ($88.6mn) of support from the Danish government.

By Pamela Machado

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