Policy

Green Clusters of Denmark

31. January 2022

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The mission of the Danish Ministry of Industry, Business and Financial Affairs is to create Europe’s most competitive and innovative economic condition in order to make Denmark an attractive place to work and run a company.

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Challenges:

The Green Clusters center on the development and production upscaling of green technologies within the areas of carbon capture storage (CCS), carbon capture utilization (CCU), Power-to-X, biotechnology, water-technology and energy-islands. As such, the Green Clusters will addresses several challenges related to the green transition, including the four core challenges identified by State of Green:

Lack of clean, affordable energy and integrated energy systems
Scarcity of clean water
Increasingly inhabitable cities
Unsustainable use of resources

Solution:

With overwhelming support from the Danish parliament, the Danish government has set one of the world’s most ambitious climate goals: to reduce greenhouse gas emissions by 70 per cent by 2030 (compared to 1990 levels) and reach net zero emissions in 2050 at the latest.

One of the Danish Ministry of Industry, Business and Financial Affairs’ key initiatives linked to this ambition is the establishment of five Green Clusters. With the Ministry’s support, local businesses, universities and technical institutes have teamed up to deliver concrete project proposals on how to enable the development and production upscaling of pioneering green technologies and solutions within the areas of carbon capture storage (CCS), carbon capture utilization (CCU), Power-to-X, biotechnology, water-technology and energy-islands.

The long-term goal of each Green Cluster is to boost economic development, create green jobs and support the export of innovative, green technologies to the rest of the world. To secure all relevant stakeholders’ commitment to this ambition, the Danish government, spearheaded by the Ministry of Industry, Business and Financial Affair, will form a public-private partnership for each Green Cluster with representatives from the local business community, local government, business-support authorities and government ministries. The Green Cluster-partnerships will provide the framework for designing future agreements on how to secure the progress and ultimate realization of the Green Clusters

The Danish government has so far pledged to spend 1 bn. DKK to support the projects of the Green Clusters.

Overview of the five Green Clusters:

The Green Cluster of Northern Jutland will develop carbon capture storage and utilization technologies.
The Green Cluster of Central Jutland will develop new water technologies.
The Green Cluster of Southern Jutland will focus on integrated energy systems between economic sectors and power-to-x technologies.
The Green Cluster of Zealand and islands is concerned with the twin ambition of becoming world leading in the areas of biotechnology and construction of green infrastructure.
The Green Cluster of Bornholm will utilize green energy from one of the world’s first energy-islands to develop Power-to-X capacities.