Overview
Denmark has a long-standing tradition of developing and utilizing renewable energy, driven by a commitment to both environmental sustainability and energy security. The country has set some of the world’s most ambitious climate targets, including a legally binding goal to reduce greenhouse gas emissions by 70 percent by 2030 (from a 1990 baseline) and achieve climate neutrality by 2050, as outlined in the landmark 2020 Climate Act. The government has recently brought forward the climate neutrality target to 2045, with a commitment to a 110 percent reduction by 2050.
In 2024, Denmark achieved a significant milestone, with over 85 percent of its net electricity generation coming from renewable sources. Wind energy remains the cornerstone of Denmark’s clean energy mix, contributing nearly 60 percent of the total, followed by biofuels and solar power. The country’s energy policy is a direct response to past crises, such as the 1973 global energy crisis, which spurred early investments in both North Sea oil and gas and renewable sources like wind and biomass.
Denmark’s energy landscape in 2025 is marked by a critical return to being a net exporter of gas. The extensive redevelopment of the Tyra gas field in the North Sea, one of the largest infrastructure projects in the country’s history, was successfully completed in early 2025. The new, state-of-the-art facility is now fully operational and is expected to produce enough gas to meet Denmark’s consumption needs and provide a significant surplus for export, enhancing energy security for both Denmark and its European neighbors. This strategic move aligns with Denmark’s goal of maintaining energy self-sufficiency while continuing its rapid transition to a fully fossil-free energy system. The government has a clear plan to eventually end all oil and gas extraction in the North Sea by 2050, as it continues to prioritize the expansion of offshore wind, energy storage, and green hydrogen projects.
Best Prospects
Concerns over climate and energy security have placed renewable energy and CO2 emissions reduction high on the Danish political agenda. Denmark maintains that energy technologies should be promoted through a combination of market mechanisms and political regulation. The Danish government wishes to secure a future energy supply that is safe, reliable, environmentally friendly, and supports growth and competitiveness.
Denmark’s ambitious climate targets and strong commitment to a green transition are creating significant opportunities for U.S. companies in key areas of energy technology.
CCUS (Carbon Capture, Utilization, and Storage): Denmark is positioning itself as a leader in the CCUS value chain. The Danish government has established a substantial DKK 28.7 billion fund (approximately $4.1 billion) to support large-scale carbon capture projects. In late 2025, the tender process for a significant portion of this fund is entering its final phase, with contracts expected to be awarded in early 2026. This presents a major opportunity for U.S. companies with expertise in:
- Carbon capture technology and equipment for industrial applications (e.g., from cement, waste-to-energy, and district heating plants).
- CO2 transport and storage infrastructure, including pipelines, shipping solutions, and geological storage services.
- Monitoring, verification, and permitting services related to CCUS projects.
Hydrogen and Power-to-X (PtX): Denmark aims to become a major producer and exporter of green hydrogen and other Power-to-X products. The government has a target of building 4-6 GW of electrolysis capacity by 2030. This ambition is supported by significant public funding and a clear roadmap for infrastructure development.
Key opportunities for U.S. firms include:
- Electrolyzers and related technologies for large-scale hydrogen production.
- Components for PtX facilities that convert green hydrogen into e-fuels like ammonia, methanol, and e-kerosene for the shipping and aviation industries.
- Cross-border hydrogen infrastructure, with a major pipeline project currently underway to connect Danish hydrogen producers in western Denmark to the German market.
Energy Diversification and Smart Grids: Denmark is not only focusing on generating more renewable energy but also on creating a more resilient and integrated energy system. This diversification effort extends beyond production to encompass all aspects of the grid. U.S. companies with advanced technologies in these areas are well-positioned for success:
- Smart grid technologies that can manage the intermittent nature of wind and solar power, including advanced energy management systems, battery storage, and grid-balancing software.
- Energy efficiency solutions for buildings, industrial processes, and district heating networks.
- Cybersecurity solutions for protecting critical energy infrastructure from evolving threats.
- Power-to-Heat solutions that use excess renewable electricity to power district heating, providing both energy storage and a way to decarbonize the heating sector.
Opportunities
Accessing Denmark’s energy market requires a strategic approach that aligns with the country’s national priorities and structured procurement processes. The market is not based on an open invitation but on a clear framework of tenders, regulations, and partnerships, reflecting a long-term commitment to a green transition.
A primary pathway for foreign companies to engage involves closely following the public procurement process. The Danish Energy Agency (DEA) serves as the central regulatory body and a crucial point of contact. Tenders for significant projects, such as offshore wind farm concessions or participation in large-scale Carbon Capture, Utilization, and Storage (CCUS) funds, are formally announced on both the EU’s Tenders Electronic Daily (TED) database and the national public procurement portal.
Furthermore, a successful market entry often hinges on establishing strategic local partnerships. Danish companies possess specialized expertise in areas like offshore wind installation, smart grid technology, and energy system integration. Collaborating with a local firm can provide a foreign company with a deeper understanding of the market, access to established networks, and a partner to help navigate the regulatory landscape.
Engagement with industry clusters and associations is also a recommended approach. Organizations such as State of Green and Energy Cluster Denmark act as hubs for innovation and business development. Participating in their events or becoming a member can provide valuable networking opportunities and a platform to showcase a company’s capabilities to a wider audience of potential partners and customers.
Resources
- The Danish Energy Agency
- State of Green
- Energy Cluster Denmark
- Danish Oil & Gas Production
- Energinet – the Danish Electricity Grid