Denmark opens for green state aid applications — EnergyWatch

From Tuesday, businesses can apply for a share of the Danish pool of green state aid with a budget of DKK 1 billion allocated by the government.

Minister for Industry, Business and Financial Affairs Minister Morten Bødskov calls the scheme ”unhealthy”, but hopes that companies that strengthen the development, research and production of green technologies will apply.

”It’s about defending but also strengthening the green positions of strength,” he says of the scheme, which targets companies in the wind turbine, hydrogen and power-to-x industries.

The new temporary scheme, which for now only has money set aside for 2024, can provide either direct support or favorable loans and guarantees to companies that want to establish new or existing technology.

It is not support for operations, the minister emphasizes, as it is hoped to be a one-off offence.

”This is not something Denmark has brought to the table. State aid is unhealthy, and therefore the government is also working to stop this,” he says, referring to the fact that other countries provide state aid, especially in the areas that the government has now identified in Denmark.

The EU has temporarily allowed state aid in 2024 and 2025 for investments in selected green technologies.

Other EU countries utilize the state aid framework set by the EU and can therefore offer more lucrative conditions for green companies.

The minister emphasizes that if Denmark is to remain competitive and have positions of strength in green energy supply, state aid is in its place for now.

”Now it is here, and therefore we have to face reality, if you will, and that is why we are establishing this scheme,” he says.

Companies will be able to apply for up to 15% of their costs to be covered by grants or up to 20% by loans and guarantees.

Morten Bødskov emphasizes that if you want the support, you must also be able to show that you are able to get support from other countries.

Whether more money will be allocated in 2025 will not be decided by the government until later this year, says the minister.

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button