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After announcing an end to oil and gas exploration in the North Sea, Denmark has put big plans for renewable energy on the agenda. The Danish Ministry for Climate, Energy and Utilities announced in February 2021 plans to build a Power-to-X Energy Island in the North Sea. This will be the largest construction project in Denmark’s history and is set to be completed by 2033. Denmark is known to be a knowledge hub for Power-to-X technology and has the ability to build the industry in environmental and wind developments. This project which will decarbonize their energy systems works towards Denmark’s ambitious goal to have a 70% reduction in CO₂ emissions by 2030 and carbon neutrality by 2050. Denmark has already presented itself as a global leader in both on and off shore wind power. The Power-to-X Energy Island will expand on this and tap into a larger offshore wind potential.

This man-made island will serve as an energy hub collecting and distributing electricity from the surrounding offshore wind farms. The island will be located 80km from the coast of Jutland in the North Sea and will serve the approximately 200 large wind turbines connected to it. What is unique about this new innovation is the ability to harness the wind turbine’s electricity without a direct connect to land. Thus far, all offshore wind farms have needed a direct connection to land. Without the need for a direct land connection, the number of farms and turbines that are able to connect to the island will be scaled dramatically. From the island, the green energy will be distributed back to nearby connected countries and islands via the electricity grid. The island’s original construction will be at least 120,000 square meters and in the first stages will have the capabilities to use the green energy to serve 3 million European households. When the project is fully scaled and implemented, this energy hub will have the capabilities to cover 10 million European households’ consumption of energy. The ownership of the new energy island will consist of a public-private partnership. The main stakeholder of the energy island will be the public sector of the Danish state. The remaining ownership will be distributed among the private sector bringing the project to its full potential in innovation, cost-effectiveness, and business potentials.

The cost of construction for this energy island will be approximately 210 billion Danish crowns, or 33.9 billion US dollars. This money in construction will all work towards expanding renewable energy capabilities. Power-to-X technologies also improve flexibility of the energy systems. However, due to its investment high costs, it can seem relatively expensive compared to other energy forms such as gas. Such things can affect energy efficiency. There is also large competition with other renewable energy technologies such as biofuel and carbon capture and storage to deliver on climate targets. Other technologies may seem more attractive due to visibility and economic success histories. External shocks such as the COVID-19 pandemic can also cause external shocks that cause uncertainty for this up and coming technology.

The Power-to-Energy Island will make advancements far beyond Denmark’s climate goals. The European Union has also set ambitious climate goals, striving to reach climate neutrality by 2050. In addition to this, the European Commission has plans to increase offshore wind capacities by 25-fold, also by 2050. The Power-to-X Energy Island will aid in the European green transition. The energy island will realize an enormous potential for offshore wind for the entirety of Europe. The European Union currently supplies 12 gigawatts of energy from offshore wind. This new project will increase the supply by 3 gigawatts of energy initially, and eventually increase the supply by 10 gigawatts. Europe’s power grid will be strengthened by this project, and renewable electricity production will increase helping them realize their climate goals. This island also has the capabilities to supply energy directly to other European countries. Belgium and Denmark signed an agreement to possibly establish an electricity interconnection through the energy island if possible an advantageous. This move can help Belgium make the transition to green energy, and future interconnections between other North Sea countries may come in the future benefiting Germany and the Netherlands. Additionally, the capabilities to cover 10 million European households’ consumption of energy of the fully implemented energy island project surpasses Denmark’s population. Therefore, the green energy coverage coming from the island is guaranteed to supply more than just Denmark. This project can also be used to supply energy beyond Denmark in the transportation sector. The wind energy can be converted to serve as fuel for shipping, aviation, and other long-haul transport. There are major opportunities coming from this project in decarbonization and reaching Denmark’s and Europe’s climate goals.

Source: https://www.smart-energy.com/renewable-energy/denmark-to-build-new-energy-islands-as-part-of-sustainability-plan/

Source: https://www.euronews.com/living/2021/02/05/denmark-s-first-artificial-energy-island-will-power-3-million-homes#

Sources

https://sg.finance.yahoo.com/news/denmark-create-worlds-first-energy-153142362.html

https://www.euronews.com/living/2021/02/05/denmark-s-first-artificial-energy-island-will-power-3-million-homes#

https://doi.org/10.3390/en14040913

https://ec.europa.eu/commission/presscorner/detail/en/IP_20_2096

https://www.nesoi.eu/content/1st-energy-island-will-be-built-danish-north-sea-coast

https://ocean-energyresources.com/2021/02/12/north-sea-energy-island-can-make-denmark-and-belgium-electricity-neighbours/