Denmark Establishes Green Fuels Alliance with India

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by | Jan 10, 2024

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Denmark has launched the Green Fuels Alliance India (GFAI), an initiative meant to support the countries’ collaboration in meeting their carbon neutrality targets while promoting sustainable energy growth in India.

The alliance, led by the Danish Embassy and the Consulate General of Denmark in India, aims to incorporate businesses, government entities, research institutions, and financial stakeholders from both countries to meet their respective goals of carbon neutrality by 2070 for India and by 2045 for Denmark. Nine Danish organizations have committed to the GFAI initiative as founding members, including Maersk, Topsoe, Umwelt Energy, Mash Makes, European Sustainable Solutions, Novozymes, Danfoss, Brdr. Christensen, and Hydrogen Denmark.

The GFAI plans to focus on developing green hydrogen, a renewable fuel that may be produced by using renewable energy and is itself emissions-free. Hydrogen fuel may be used to decarbonize emissions-heavy industries, including shipping and industrial operations like steel and cement production.

“The availability of green energy and green fuel in sufficient quantities at cost-competitive price levels is the single largest challenge to the global shipping’s net-zero journey,” said Morten Bo Christiansen, head of energy transition for A.P. Moller-Maersk. “India has excellent conditions for renewable energy production and ambitions to be a global leader in the green energy value chain. Drawing on our more than 100 years of business relations with the nation, we are very excited to join the involved Indian and Danish stakeholders as a founding member of the Green Fuels Alliance India.”

India Faces Increased Energy Use with Population Growth, Requires Investment for Clean Energy Transition

In 2023, India surpassed China as the most populous country in the world. This growth, combined with the country’s rising temperatures and increased need for air conditioning, has caused its electricity production to contribute significantly to global emissions.

Meeting Paris Agreement goals will reportedly require the country to decarbonize swiftly. That being said, India’s per capita income is the smallest among the world’s top emitters, and investment in the country’s green transition will be needed to wean the country off of cheaper energy sources like coal.

At present, the country plans to double its coal production despite its commitment to transition away from fossil fuels, claiming it is the only affordable fuel available in abundance within the country.

India has made efforts to increase renewable energy production, with about 22% of its power generation produced by wind and solar energy. These energy sources are reportedly unreliable, however, as the country experiences uncertain weather conditions, according to a CNBC report.

Green fuels and other green energy alternatives may help mitigate the country’s dependence on coal, while increased investment in the upfront costs associated with grid-scale battery storage may also address current obstacles in terms of renewables.

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