Denmark’s Energy and Offshore Sector: Key Insights for 2024 and Beyond

Eight months into 2024, Denmark's energy and offshore sectors are in full swing, reflecting a year of significant transformation. As we continue to navigate this dynamic landscape, staying updated on new projects, funding opportunities, and legislative changes is crucial for industry professionals and stakeholders.

Denmark's energy sector is diverse and evolving, encompassing:

• Onshore and offshore wind energy
• Electricity production, transmission, and distribution
• Offshore oil and gas exploration and production
• Carbon capture, transport, and storage (CCS)
• Hydrogen production, transport, and power-to-x (PtX)
• Energy islands

Key Developments and Insights for 2024

Wind Energy: Denmark is making strides in offshore wind, with major tenders underway to establish around 6 GW of capacity by 2030. Authorities are currently fine-tuning tendering processes, with feedback due by February 8, 2024. Onshore wind development might be slower, focusing on streamlining permitting. For those involved in offshore wind, supporting major developers and contractors in Denmark and the North Sea region remains a critical opportunity.

Oil and Gas: The offshore oil and gas sector is active, with the Hejre field’s license extended to 2047 and a development permit secured. Following an environmental impact assessment, attention turns to whether the field's development, which stalled in 2016, will resume. This sector continues to be a key area for legal and commercial advisory.

Carbon Capture and Storage (CCS): Denmark is progressing with CCS, with ongoing tenders for storage solutions both onshore and offshore. As of January 17, 2024, large emitters are expected to receive expanded rights for CO2 capture, and new CO2 transport legislation is anticipated by mid-2024. For CCS professionals, staying informed and engaged, including attending the upcoming webinar with Dansk Offshore, EVIDA, and TotalEnergies, is essential.

Hydrogen and Power-to-X (PtX): Denmark aims to establish 4-6 GW of electrolysis capacity by 2030, supported by a recent DKK 1.3 billion contract for 180 MW of capacity. With rising investments in PtX and hydrogen infrastructure, stakeholders must stay updated on these developments to capitalise on emerging opportunities.

Energy Islands: The Bornholm energy island project is Denmark’s active energy island initiative after the North Sea project was abandoned in 2023. With feasibility studies and initial development steps in progress, monitoring the evolution of this project throughout 2024 will be intriguing.

Implications for the Transmission and Distribution Sector

As Denmark advances its energy ambitions, the transmission and distribution (T&D) sector faces both opportunities and challenges:

1. Increased Demand for Infrastructure Expansion: Upgrading Transmission Lines: To handle the added capacity from 6 GW of offshore wind and hydrogen production. Building New Infrastructure: New lines and substations may be needed to connect remote and offshore generation sites.
2. Enhancing Grid Flexibility and Resilience: Advanced Grid Management: Smart grid technologies will be crucial for balancing supply and demand. Energy Storage Integration: Essential for managing fluctuations and providing backup during low renewable output periods.
3. Facilitating CO2 Capture and Hydrogen Transport: CO2 Pipeline Networks: Development of pipelines for CO2 transport is necessary for storage and utilisation. Hydrogen Infrastructure: Establishing or modifying pipelines for hydrogen distribution is critical.
4. Supporting Decentralised Energy Production: Grid Upgrades for DER Integration: Enhancing local networks to manage distributed energy sources. Monitoring and Control Systems: Implementing robust systems to ensure grid stability and integration.
5. Investment and Regulatory Challenges: Funding and Investment: Securing necessary funding and aligning with long-term goals. Regulatory Support: Working with regulators to develop supportive policies and incentives.

Conclusion

Denmark's ambitious energy projects and technological advancements in 2024 place substantial demands on the T&D sector. Expanding, modernising, and enhancing flexibility and resilience will be key to supporting the integration of new energy sources and achieving Denmark’s green transition goals. Addressing these challenges is essential for maintaining a stable and efficient energy system.

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