New York's district energy sector: A golden opportunity for Danish companies
In the past years, New York has positioned itself as a leading actor within the green transition in the US, driven by ambitious initiatives such as the "Inflation Reduction Act" (IRA) and "Climate Mobilization Act". These regulations support the development of sustainable energy solutions and have created a high demand for energy-efficient technology – an area where Danish companies excel.
In 2022, President Joe Biden passed the comprehensive "Inflation Reduction Act" (IRA). The support package offers more than 2500 billion DDK in governmental support to green energy projects in the US, including energy efficiency projects. The IRA aims to reduce energy costs, promote cleaner production methods, and cut 40% of the carbon emissions from the 2005 levels by 2030.
Moreover, in 2019, New York introduced the "Climate Mobilization Act", a series of laws designed to strengthen climate actions and lower carbon emissions. A key component within this act, "Local Law 97", demands that larger buildings reduce their energy consumption and minimize their carbon emissions. This regulation has generated an increased demand for energy efficient solutions.
All eyes on Denmark
The increased focus on upgrading and modernizing the energy infrastructure and political support of green transition from the US and New York has created new export opportunities for Danish solutions. Danish companies, known for their innovation and sustainability, offer technologies designed to accommodate the regulative demand of New York, especially within the district energy sector.
As part of the green transition in New York, the New York State Energy Research and Development Authority (NYSERDA) has initiated a series of initiatives, such as workshops and information programs, to diffuse knowledge and implementation of district energy solutions across the state. These initiatives has created a growing interest in Danish technology and know-how.
In New York’s energy sector, the focus is on gaining knowledge and developing best practices. There is a need to know about business models, finance opportunities, and city planning in the initial stages, and both public and private actors are looking to Denmark for inspiration. The market is still developing, but now is the time to position Danish companies and guide them through the expansion of the American market within the next few years
Several Danish companies have already established themselves in New York. Logstor, which has extended experience in the North American market, has also identified New York as an exciting area with many upcoming opportunities.
We have had great success with projects in Canada for some years, but we can now see that the US market is growing and that opportunities grow within the next few years. Especially New York is interesting with regulations and politics that will lead the agenda in the right direction. There is a large interest in the Danish district energy model, and therefore, Danish companies can position themselves reasonably for the ambitious projects we will be presented for in the coming years
To promote Danish strongholds within district energy in North America, the Trade Council has arranged a series of initiatives such as webinars, receptions, workshops, and delegations. These are designated to strengthen the cooperation between Danish and American energy actors as well as create a forum for knowledge sharing and commercial opportunities on both sides of the Atlantic.
Earlier this year, a reception, among other things, was organized for central stakeholders within the city-, energy- and climate areas in New York City. The purpose was to promote cooperation between public and private units in a joint effort to tackle the city's challenges within sustainable development.
Later this year, a workshop is being held, where representatives from cities, universities, and utilities will participate in focusing on knowledge sharing and the establishment of partnerships. This will be followed by a delegation trip to Denmark, where 10-20 American decision-makers and company leaders gain insight into the Danish district energy system as well as the technologies and business models that have made Denmark a global frontrunner within district energy.
"By inviting North American organizations to Denmark we have a unique opportunity to strengthen our relationship and show exactly what Denmark has achieved within district energy solutions. These visits are not only supposed to show Denmark's technological progress and innovative business models; they also promote a more in-depth understanding of the opportunities available for Danish companies in North America. The delegations sets the foundation for commercial cooperation and long-term partnerships, which both Danish and American parts appreciate," says Gustav Winding and continues:
"At the Trade Council, we are dedicated to supporting Danish companies in entering and expanding the North American market for sustainable energy. We offer tailored market insights and assist and support the strategic ambitions of Danish companies on the other side of the Atlantic."
For more information, please contact:
Our Energy Alliances
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