The Danish government is being urged to help the country’s pension funds and insurers invest billions of Danish kroner in the development of so-called power-to-x (PtX) technology.

Industry association Insurance & Pension Denmark (IPD) said its members’ capital would be vital to meet the country’s ambitions to convert green electricity into liquid energy – known as PtX – and made six recommendations.

IPD said there were attractive investment opportunities for institutional investors in contributing to the level of investment need by 2030, but called for a clear strategy and the removal of certain barriers.

The organisation has proposed the following:

  • The creation of an ambitious PtX strategy as soon as possible;
  • The removal of barriers to developing the technology;
  • The setting of a higher depreciation basis for larger green facilities to alleviate uncertainty around storage needs;
  • The introduction of attractive and long-term framework conditions for PtX systems;
  • A revising of the EU’s RED II renewable energy directive so green-labelled power can also be produced by existing renewable energy plants contributing to PtX plants rather than just new plants;
  • The awarding of green certification to PtX product.

Deputy director Tom Vile Jensen said: “For PtX to become an export adventure, it requires significant investments in the coming years.”

A report published by lobby organisation Dansk Energi estimates that between DKK25bn (€3.4bn) and DKK35bn will be needed to develop PtX, which the government has said could reduce CO2 emissions by up to 3.5m tonnes by 2030.

“So our industry’s investment capital is absolutely essential to reach the goal,” Vile Jensen said.

He added that a number of things needed to happen for Denmark to fully exploit PtX, including the continued expansion of the country’s wind-energy capacity.

“We need a green helping hand, for example by removing barriers in electricity tariffs and creating a green deduction for these investments,” he said.

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