Competitive PtX

Challenge

Denmark has set an ambitious goal to achieve climate neutrality by 2045. Reaching this target requires a comprehensive transformation of energy supply and consumption, where fossil fuels are replaced by sustainable alternatives. Power-to-X (PtX) technologies, including hydrogen production via electrolysis, play a crucial role in this transition.

However, current PtX solutions are not yet cost-effective enough to compete with fossil-based alternatives such as natural gas-derived hydrogen.

Additionally, there is a need to build competencies within the PtX industry to ensure a qualified workforce.

The project addresses both of these challenges.

Solution

The project has two key objectives:

• Development of a standardized, modular, and scalable electrolysis plant for hydrogen production – named HydroGen2.
• Support for competence development within PtX in Southern Jutland to ensure a qualified workforce.

Unlike traditional electrolysis plants, which require extensive engineering and coordination of custom-designed components, the HydroGen2 concept will be based on industrial serial production.

This enables significant savings in infrastructure and installation time, as the plants are manufactured in a factory setting and require minimal adaptation at the installation site.

The current practice for building electrolysis plants is both expensive and time-consuming, often with costs amounting to 150–200% of the electrolysis units themselves and installation and commissioning periods of up to a year.

HydroGen2 will change that by:

• Standardizing and industrializing the production of electrolysis plants.
• Reducing infrastructure costs to only 50% of the electrolysis unit's price.
• Shortening installation time from 6–12 months to just a few weeks.
• Significantly reducing the need for project-specific engineering.

Impact

These improvements will lower the cost of hydrogen production, thereby contributing to making green hydrogen more competitive.

The project is expected to result in:

• A 20–30% reduction in hydrogen production costs, making green hydrogen economically attractive compared to fossil alternatives.
• Increased energy efficiency and improved sector coupling in the energy system.
• Creation and retention of jobs in Denmark’s PtX sector.
• Reduced CO₂ emissions and contributions to Denmark’s climate goals.

Overall, the project will play a central role in the green transition by delivering a cost-effective and scalable solution for hydrogen production while ensuring the necessary competence development within the industry.