Focus on these three areas to make Denmark a frontrunner in P2X
The Danish Parliament just made a climate agreement which promises further financing of P2X. At GreenLab, we work specifically with research, test and commercialization of P2X, and we are happy that a coherent strategy is now on its way for both CCUS and P2X. But it is very important how the investments are distributed – and three areas in particular would benefit from financial support.
Power-to-X is many bookmakers’ favorite when it comes to solutions that can help create a green transition for industry and heavy transport. Consequently, we are happy to see that P2X is on the radar of Danish politicians and that investments are being made to strengthen the Danish position in the area. Last year, GreenLab received €10,7 million from the Danish Energy Agency’s funds for energy storage to create a 12 MW production facility for P2X.
Our work has given us valuable experience in how to make P2X both feasible and profitable.
Based on that experience, we would like to share our recommendations for how to most effectively utilize the coming investments from the Danish State.
1: More applied research
GreenLab is a national research facility for green technologies, and we have strong collaborations with DTU, Aarhus University, and Aalborg University. But Denmark could invest even heavier in applied research. In Germany, things are moving with great momentum, and once the German industrial motor is ignited, we will have a hard time keeping up. We have a unique opportunity to redeem a great scientific potential if sufficient investments are made in applied research for P2X. The greatest potential lies in research projects that are established as collaborations between industries, the transport sector, and universities. But it is necessary with additional funding and increased strategic focus on how research contributes to the coherent energy system of the future.
2: More largescale testing and production
If P2X is to truly solve the problems we face, we need to think in largescale testing and production from the beginning. There is no use in being able to solve a problem at a theoretical level if we cannot transform it to largescale testing first and largescale production later.
GreenLab’s CEO, Christopher Sorensen, says: “P2X represents a potential export adventure for Denmark, that resembles the wind adventure many years ago. But it will only happen, if we dare to think big from the start”.
3. Think about the buyers – create a market
Green technology is nothing without companies willing to purchase it. We need to invest in creating the very market for P2X. Relevant industries and sectors must be involved in the development, so that everyone is on the same page when the technology is ready for implementation.
But great technology is only half the story. The other half is creating the right incentives to use that technology – and a series of instruments are available for this. A green tax reform and carbon fees are the obvious choices, but we also need to implement EU’s directive for sustainable energy (RED II) and drive digitalization of how we control energy through for instance blockchain or crypto energy.
Is P2X enough?
P2X is an important part of the solution to ensure CO2-neutrality in industries and heavy transport. But the total task of making Denmark fossil free will take bigger and more groundbreaking solutions than P2X alone.
The society of the future must be based on a model of circular economy where we don’t use resources at all (like energy) without making sure that they are reusable. The climate agreement just made only accounts for about one fifth of the 70% reduction target, so we need to do much more in order to succeed.
Christopher Sorensen says: “At GreenLab we have developed an integrated system, which makes it possible for the companies in our industrial green business park to share their excess energy with each other, so they achieve 100% sustainable production – and we have the cloud solution that keeps everything running too. In our view, the circular aspect is key for the green transition. P2X is part of the solution but a coherent energy system is the joker that can really make a transition happen”.