Insurance and Pensions Denmark (I&P Denmark) has welcomed an agreement to increase cooperation in the field of hydrogen between Denmark and the Netherlands, highlighting the deal as “good news” for the challenged renewable energy market in Denmark.

According to I&P Denmark, the Danish pensions industry previously stressed the need for increased cooperation on the development of regional infrastructure, such as pipelines, storage and port facilities, so that a sustainable hydrogen supply chain can be established.

This comes after a recent survey from Partnership for Havvind, of which I&P Denmark is a part, found that an investment in one Danish gigawatt of offshore wind has worsened by DKK 13.3bn since 2021.

In particular, I&P Denmark explained that one of the challenges is that Denmark has difficulty getting rid of electricity, suggesting that hydrogen can provide an "economic windfall" in investments in renewable energy.

Given this, I&P Denmark deputy director, Tom Vile Jensen, said that it is "gratifying" that Denmark and the Netherlands are now strengthening this cooperation, so that more investments can be attracted to Denmark and in Danish renewable energy.

"Export of Danish hydrogen is absolutely crucial for wind turbines in Denmark in particular to be profitable in the future for possible investors, such as pension companies," he continued.

"It is about increasing sales opportunities. In the Netherlands, they have the opportunity to refine the hydrogen into, for example, fuel for aircraft and ship transport, and there is a large hinterland of European heavy industry that will also be able to take the hydrogen that Danish offshore wind farms can contribute to."

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