Providing a steady base

The hydrogen initiatives in the Danish Energy Plan 2020 provide a strong basis for establishing the hydrogen infrastructure needed to enable market introduction of fuel cell electric vehicles (FCEV’s) beyond 2015.

A new Infrastructure Program is to be established providing support for roll-out of infrastructure for both FCEV’s and BEV’s during 2012-2015. The Program together with already initiated industrial initiatives can enable establishment of a country wide hydrogen refueling network by 2015. Already implemented tax exemptions on up to €0,08/kWh on electricity for hydrogen production provides a strong case for a renewable hydrogen supply for the infrastructure network.

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Ensuring tax exemptions for fuel cell electric vehicles

The existing Danish tax exemption for FCEV’s is to be continued throughout 2015, ensuring a 180% tax reduction compared to conventional vehicles. With indicated FCEV’s vehicle pricing by 2015, this could enable a FCEV market introduction price competitive to that of comparable gasoline vehicles. In Denmark 180% tax and 25% VAT is applied on the base vehicle price meaning that a €17.000 gasoline vehicle reaches an end-price for the vehicle-user on €50.000. This provides an indirect support on more than €23.000 for each FCEV after payment of 25% VAT.

A strong foothold within the energy sector

The new Danish hydrogen support initiatives follow years of continued and increasing public support for fuel cells and hydrogen (FCH) research, development and demonstration in Denmark. Since 2001 public R&D programs have provided €150 million in public support for FCH activities, reaching €29 million in 2010 alone, corresponding to one third of all public funding for energy R&D in Denmark that year. The public funding for FCH activities in Denmark are expected to reach more than €30 million in 2011 when fully summarized later this year.

Source: Hydrogen Link

Read the full press release on www.hydrogenlink.net