Record-breaking Sales for Green Danish Export in 2022

Wind turbines, amine-scrubbing systems and gas engine units are some of the Danish sustainable solutions that companies such as Ørsted, Ammongas and Nissen Energy have sold in significant deals in the first half of this year. Despite the challenges for global supply chains during Covid-19, Denmark has exported for more than 200 billion Danish kroner (DKK) to the U.S. in the past 12 months, from May 2021 to May 2022. This makes the U.S. our largest export market, and with the shifting geopolitical landscape, it is more important than ever to keep the bonds of our transatlantic cooperation strong.

“We are living in an uncertain world. We see challenges with export and in supply chains, and we must work together to solve this. But I have no doubt that the United States will continue to be perhaps the most important market for Denmark for many years to come,” says Minister for Foreign Affairs of Denmark Jeppe Kofod to Børsen in March 2022. Read the article here.

Local partnerships and job creation is key

On the global green agenda, energy independence has particularly gained focus, as Russia’s invasion of Ukraine has made energy policy a matter of security policy. However, across sectors the top priority for the U.S. administration is green jobs. For Danish companies to be successful across the Atlantic, establishing local partnerships and creating jobs is crucial to win contracts.

Danish export in North America has had a great first half of 2022 with significant orders for Danish companies in several key sectors. Our companies not only sell their products and services but also help create jobs, local supply chains as well as benefit the U.S. climate and sustainability footprint. It is a win-win situation.

Jacob Vind Head of Trade, Embassy of Denmark in Washington, D.C.

In 2020, there were 912 Danish subsidiaries in the U.S. employing more than 78,000 people, and Denmark’s foreign direct investments in the country amounted to 263.3 billion DKK by the end of 2020. Three sectors where Danish companies have ‘rung the bell’ for impressive U.S. orders this year are offshore wind, biogas and water.

Rapid growth in the biogas sector

With strong political focus and a seemingly endless list of resources, the development of biogas projects is picking up in the U.S. As the first country to reach 25 percent of biomethane in its gas grid, Denmark and Danish biogas solutions have become highly sought after in the U.S., which provides new opportunities for Danish companies.

Our Biogas Advisory has experienced great interest in the Danish biogas model this year during conferences, webinars and an American delegation trip to Denmark in June. Danish companies from the Trade Council in North America’s Biogas Alliance have shared their experience and know-how from the vast development in the field of biogas in Denmark with American partners and formed strong relations that hopefully will create value to the development of the American biogas sector in the near future.

Ammongas and Biogasclean are members of the Trade Council in North America’s Biogas Alliance, and only six months into 2022, the Danish companies have already received several orders worth millions of U.S. dollars (USD). Exceeding all previous years.

”It has been a big step for Ammongas to enter the alliance with the Trade Council in North America. Through the alliance’s contacts we have landed our first project in the U.S. An Ammongas Upgrading system for amine-scrubbing will be installed on a dairy farm in Maine and the project amounts to approximately 3 million USD.”

Alexander Ryhl Head of Sales, Ammongas

The demand for biogas solutions is not slowing down anytime soon. The American Biogas Council estimates that there is potential for over 14,000 new biogas facilities in the country, and investments in larger biogas projects are growing.

Read more about Biogasclean here.

Danish water solutions are continously coveted

The water sector is facing great challenges due to aging infrastructure and water scarcity. Challenges that call for high quality, innovative and cost-efficient solutions. Over the years, cities, municipalities and states across North America have increased their focus on developing sustainable utilities, where Danish expertise in the sector is in great demand.

The U.S. Water Alliance, the Embassy of Denmark in Washington D.C., and the Danish Water and Wastewater Association signed a Memorandum of Understanding in April to support transatlantic efforts to lower climate impacts in the water sector. They agreed to share knowledge on solutions within carbon sequestration, emissions reductions and offsets, energy optimization, and much more to support Net Zero water goals across the U.S.

The Danish water sector is already well on its way to reaching a climate-positive and energy-neutral water sector by 2030. Targets that support the Danish government's strategy to reduce GHG emissions 70 percent by 2030.

Danish companies continue to expand their already well-established presence in the U.S. market for solutions within water distribution, water resource management, wastewater treatment, and sewer systems. Earlier this year, one of the Water Technology Alliance members, NISSEN Energy, landed an order from Danville Sanitary District for a power module, which along with the companies’ maintenance services has brought them in around 700,000 USD in sales this year.

”We’ve spent this spring re-establishing ourselves in the U.S. market after two years of lockdown, and we are back on track. Through the Water Technology Alliance’s activities, such as the latest fact finding tour, we’re in contact with new potential clients and have several interesting projects in the works.”

Thorvald Pedersen Sales Manager, NISSEN Energy

Read more about the project in NISSEN Energy’s press release here.

POLITICAL FOCUS ON OFFSHORE WIND CREATES MASSIVE OPPORTUNITIES

A sector with great political focus and growth in the U.S., as well as a good example of the necessity of local partnerships, is offshore wind. Last year, Biden announced a target of 30 GW offshore wind by 2030 and 110 GW by 2050. Danish developers have won 40 percent of the lease areas that have been auctioned off so far.

This opens up the U.S. market for the Danish sub-suppliers as well, and the demand was evident from our Wind Energy Advisory’s roadshow in March this year. You can read about it here.

A project that received a final investment decision this year is one in New York that Ørsted secured with their partner Eversource. The first ever offshore wind project in New York.

“I’m very pleased we’re able to approve our first final investment decision on a U.S. offshore wind project and be at the forefront to contribute to New York’s ambitious offshore wind goals. The United States represents an important growth market for us, and with seven already-awarded U.S. projects accounting for approximately 5 gigawatts of clean offshore wind energy, Ørsted is leading the growth of a new sustainable industry that will create jobs and economic development along the East Coast and across the United States."

Martin Neubert Chief Commercial Officer and Deputy Group CEO, Ørsted

Martin Neubert says this in Ørsted's press release in February 2022. Read it here.

When completed, the 130 MW South Fork project off the New York shores will be able to power more than 70,000 New York homes. It is one of several projects that Ørsted has won in the region, securing them 5 GW of the 17,5 GW that has been awarded in the U.S.’ offshore wind pipeline.

Action plan for green danish export to the u.s.

In 2021, the Danish government launched their action plan to strengthen green export to the U.S. Denmark and Danish companies can share knowledge on policy, technological solutions, expertise and investments that can help the U.S. reach their ambitious green targets and contribute to creating more green American jobs.

Four areas are prioritized in the efforts to strengthen the green export:

Offshore wind
Energy efficiency
Water
Sustainable food and agriculture production

The action plan is the first step towards a strengthened cooperation between business organizations and Danish businesses on increased trade with the U.S. This requires continued collaboration on joint initiatives, and there has been an abundance of activities to support it so far, including delegations with ministers, businesses and other relevant actors. 23 August 2022 the Trade Council in North America is hosting a Buy American webinar, which we will share more information on soon.