Prefeasibility study on optimal site location for Power‐to‐X: An experiment for the Danish energy system

Abstract

Denmark has set ambitious goals to cut greenhouse gas emissions by 70 % by the year 2030, and in an effort to reach this, the Danish Energy Agency has proposed a Power-to-X strategy that involves an overall capacity target of 6 GW of electrolysis by 2030. The objective of the following study was to identify the optimal site location for siting an electrolyser for Power-to-X as a prefeasibility analysis. The results indicated that Jammerbugt was an ideal area, for an add on solution to an already existing wind turbine, with 1303 h of excess wind energy available for Power-to-X. A financial analysis showed that there was an NPV of - €126,032 after a 20-year period, which improves with a theoretical 20 % governmental subsidy to €16,662. Therefore, it was found that Power-to-X is still currently reliant on governmental support as a viable business case. The study's findings highlight the importance of this support for Power-to-X to be a viable business case, such as the decision to allocate 1.25 billion DKK for hydrogen production by 2030.