Denmark and the Netherlands - Partners in Green Energy Transition

In 2023 the Netherlands’ CO2 reduction targets were sharpened to meet new European emission goals. With these targets, the Netherlands plans to achieve climate neutrality in 2050 and reduce emissions by 55% in 2030 relative to 1990 levels.

The Netherlands is one of the most important export markets for Danish energy technology. In the period 2019-2023 the Netherlands ranked as the third biggest export market with average annual exports of 6.8 bill. DKK (910 mill. EUR).

Further, mutual investments and joint projects within wind power, gas and power-to-X add to the strong commercial linkages between the energy sectors in the two countries. So does the COBRA cable connecting Esbjerg, Denmark with Eemshaven, the Netherlands through 325 km of sub-sea HVDC power cable.

The Danish Energy Agency cooperates with the Dutch energy authorities promoting green energy transition. This Energy Governance Partnership focuses on sharing Danish experience in regulation and planning of sustainable district heating and energy efficiency. Knowledge-sharing flows both ways and there is a lively exchange between authorities, organizations, and companies between the two countries. Further, both Denmark and the Netherlands are committed partners to the North Seas Energy Cooperation paving the way for an accelerated build-out of wind power in the North Sea.

Dutch energy and climate policies

With the Climate Action Program 2030 the Dutch government establishes a comprehensive framework of policies and measures to support their climate ambitions. It sets legally binding targets to reduce greenhouse gas emissions by 55% by 2030 compared to 1990 levels and achieve climate neutrality in 2050.

The share of Dutch energy consumption from non-fossil sources has increased in recent years reaching a share of 17,4% in 2023. This is up from 4,1% ten years ago. While the Netherlands has succeeded in decoupling economic growth from CO2 emissions, the Dutch economy is still highly dependent on fossil fuels.

In 2023, nearly half of the Dutch power production came from renewable sources. This is up from 40% in 2022. Fossil fuels accounted for 49,4% of total production while nuclear and other sources accounted for 3,6%.

Most Dutch renewable power is fueled by wind and biomass, which accounted for 50,6% and 37,1%, respectively, of renewable power production in 2023. Offshore wind is strong in the Netherlands, and in 2023 contributed 40% of total wind energy production.

In the Netherlands, the green transition has gained significant momentum over the past eight years. The share of renewables in power production rose from 12% in 2015 to 47% in 2023. In comparison, the EU average was 44,7% in 2023.

The Dutch government has established a highly effective policy framework for offshore wind development. By 2032 the Netherlands aims to reach 21 GW of offshore production capacity and 70 GW capacity in 2050, further helping the electrification of society.

Furthermore, the Netherlands aims to make their heating systems sustainable by phasing out natural gas in residential heating by 2050, by switching to district heating and electric heating appliances.

Danish exports of energy technologies

The Dutch-Danish trade relations in energy technologies are thriving. Exports levels are high, although they have seen fluctuations. The peak exports were in 2020, with a value of 13,2 bill. DKK (1,8 bill. EUR). In 2023 the total value was 4,6 bill. DKK (620 mill. EUR).

The exports have over the past decade consisted primarily of wind energy technologies. The export value of wind energy technologies was 2 bill. DKK (270 mill. EUR) in 2023 and peaked in 2020 at 11,3 bill. DKK (1,5 bill. EUR).

Strong wind technology exports

Value of Danish energy technology exports to the Netherlands.

Advances in Power-to-X

The Netherlands has strong competencies in the development of Power-to-X facilities and has Europe’s largest research centre for electrolysis technologies, TNO Faraday Laboratory. The Netherlands was among the first Euro-pean nations to recognize green hydrogen as a necessary part of the green energy transition, and it is estimated that hydrogen could meet as much as 24% of the world’s energy demand in 2050. Therefore, the Netherlands has set goals to achieve 500 MW of electrolysis capacity by 2025 and 3-4 GW by 2030.

In the future, energy systems powered by renewable energy, green hydrogen will play an increasing role to buffer fluctuations in power production. The Netherlands aims to integrate hydrogen in the decarbonization of transport, agriculture and residential heating.

The Dutch-Danish partnership is strong regarding advancing Power-to-X technologies. In 2020, the Netherlands made an investment of DKK 1 bill. in a Danish 100 MW electrolysis facility. This collaboration supports the transition into green fuels but also helped the Netherlands meet its EU 2020 emission targets through the transfer of EU renewable energy credits.

Projects like Ørsted’s SeaH2Land and the Zeevonk project, a joint venture between Vattenfall and Copenhagen Infrastructure Partners, also highlight the nations’ partnership in wind and Power-to-X. SeaH2Land aims to integrate a 1 GW electrolyzer powered by a 2 GW offshore wind farm in the North Sea, by 2030. Similarly, the Zeevonk project combines a 2 GW off-shore wind farm and a 50 MW floating solar farm with an electrolyzer to produce green hydrogen.

The ports of the Netherlands, particularly the Port of Rotterdam, play an important role in international trade, serving as Europe’s largest hub for energy products like crude oil and liquefied natural gas. These facilities could be repurposed for handling Power-to-X fuels, such as hydrogen, with modest modifications. Additionally, with the declining demand for gas, the country’s extensive gas pipeline network, with a total length of 136,000 km, can provide a unique opportunity to develop a distribution backbone for hydrogen. Therefore, it is foreseen that a future Danish hydrogen infrastructure should connect to the Dutch.

DI assists member companies

DI Energy undertakes a range of export promotion activities aiming at the Netherland’s investment in energy and green transition in general. The activities include trade delegations travelling both ways, highlighting business opportunities and bringing companies and decision makers from both sides together. Current activities include focus on wind energy, Power-to-X, bio-gas, district energy and energy efficiency.