Recent numbers released by The Danish Energy Agency, Danish Energy, Confederation of Danish Industry, Wind Denmark and The Danish District Heating Association, show that the Danish exports of energy technologies and services amounted to DKK 122,6 billion in 2019 - roughly a 10% increase compared to 2018.
While the distribution of export across different energy solutions shows that the flow of traditional solutions has remained stable, green solutions have gained a strong momentum. This momentum has contributed to the fact that a total of 72% of Denmark's total energy technology export is now based on green energy solutions. A huge benefactor is the growth in exports relating to windmills. According to Danish Energy and Confederation of Danish Industry, Danish green wind technology and service provider companies contributed DKK 66,5 billion (roughly 55%) to the total export. However, despite wind being a big business, Danish companies focusing on categories such as district heating and bio energy also experienced export growth.
Room for growth outside Denmark's local markets
The nature of Danish exports shows that geographical proximity is still a huge factor. Around 60,5 % of exports go to European countries. Of these countries, Germany and Great Britain are the main importers of green Danish energy products and services. Outside of the European Union, export to The United States of America and China is increasing.
The Danish Minister for Climate, Energy and Supply, Dan Jørgensen (S), comments that the increase in Danish exports shows the success of green Danish energy companies, which is widely beneficial for both Denmark, importing countries and the climate. Further, Anders Stouge, Vice President in Danish Energy, argues that green solutions to complex problems is in demand and Denmark has a unique opportunity to show green leadership that is not only environmentally friendly, but also a good business.
Investments are needed to fuel the green transition
Moving forward, it is the ambition of Denmark and surrounding countries to become increasingly more sustainable. However, if Denmark is to play a pivotal role in this transition additional investments are needed. To support this ambition, the Danish Government has allocated DKK 25 billion to Denmark’s Green Future Fund (in Danish "Danmarks Grønne Fremtidsfond") with a mandate to invest in green solutions and technologies. Within the Green Future Fund, Denmark´s Export Credit Agency (EKF) has been given DKK 14 billion earmarked to strengthen the green export growth of Danish companies. EKF will do so by deploying its international network of contacts within climate and export knowledge.
Denmark’s Green Future Fund is creating better terms and conditions for private investments for climate solutions for private companies. This is a necessity as the public sector is unlikely to fund all climate solutions via public projects. EKF and Denmark’s Green Future Fund will focus on a variety of export companies and technologies. Having said that, wind energy, being one of the most important green energy sectors in Denmark, will naturally be prioritized. In addition to wind, water- and bio technology companies are areas of focus for EKF. This entails treatment of drinking water and water used for industrial processes.
It is worth mentioning that EKF sees a unique opportunity within water related technologies as Danish companies have a long-standing track record of delivering world class products and solutions. EKF will also be able to help Danish companies with exports in markets and countries with risky and uncertain market conditions by providing guaranties, loans and securities backed by the Danish state and Denmark’s Green Future Fund.
References (in Danish)
Get in touch for more information about business opportunities in Singapore:
Mark Edward Perry
Trade Advisor at Royal Danish Embassy Singapore
Phone: +65 9088 5567