Danish Energy Plan Boosts Hydrogen

The Danish Government’s latest energy plan will accelerate the development and market acceptance of hydrogen vehicles by exempting them from taxes. The plan also calls for $166 million per year to be spent on energy research, with as much as $33 million annually going to hydrogen fuel cell development.

The goals of the Energy Plan 2025 include achieving energy savings of 1.25% per year through conservation measures, boosting renewable energy sources to cover 30% of total energy consumption, and fueling transport with at least 10% bio-fuels by 2020. The plan also establishes a Energy Technical Development and Demonstration Program with a budget of $118 million. This program will provide funding for hydrogen and fuel cell development, along with money for wind turbines, low energy buildings, and second generation bio-fuels.
The Danish Energy Authority’s 2005 National Hydrogen and Fuel Cell Strategy called for doubling support for hydrogen and fuel cell research from $18 million in 2006 to $33 million in 2007. This goal should be achieved under the new plan.

The elimination of taxes on hydrogen vehicles should be especially significant because Denmark has some of the highest vehicle taxation rates in the world. The country’s 180% registration tax and 25% VAT can more than double the price of a new car compared to other places in Europe. As a result, exempting hydrogen vehicles from the taxes may go a long way towards making them price competitive.

Hydrogen Daily