[In Focus] From the Land of Lego to a Green Hydrogen Powerhouse

Kim Young-woo, Research Fellow at the Win-Win Growth Research Institute

Denmark is a country well known for LEGO. The block toy, synonymous with LEGO, originated from the phrase ‘leg godt,’ meaning ‘play well.’ Since the 1960s, it has become a global brand, recognized for helping not only children but also adults develop creativity. LEGO, which can be freely assembled and disassembled for play, is a culmination of advanced technology based on durability and precision, reflecting the company slogan ‘Only the best is the best.’

Denmark is also famous as an advanced agricultural nation, a result of national consensus involving land reclamation, cooperatives, and the 4H spirit. Technology played a significant role in this process as well. Denmark is the world’s largest exporter of pork, with exports exceeding 4 billion dollars annually, thanks to meticulous inspections ensuring food cleanliness and safety. During this process, research on infectious diseases led to the successful extraction of insulin from pig pancreas, a gift born from a culture that values technology. Denmark was the first country to commercialize diabetes treatment drugs and has expanded to become a leader in the bio and pharmaceutical sectors.

Recently, Denmark has been focusing on developing energy storage technology (PtX·Power to X) to respond to climate change. This involves converting electricity (Power) obtained from renewable energy into various green fuels (X) such as hydrogen through electrolysis. Here, X signifies infinite possibilities, meaning it can be anything. For example, electricity generated from wind power can be converted into gases like hydrogen and ammonia or liquids like methanol. Among these, green hydrogen is especially spotlighted as an advanced technology that emits no greenhouse gases.

Denmark once held the world’s highest share of wind power, supplying 42% of its total electricity from wind energy. However, the intermittent nature of wind due to weather conditions has driven the focus on developing energy storage technologies. PtX is a groundbreaking technology because it can store large amounts of energy for long periods and enables efficient energy distribution by utilizing surplus renewable electricity.

In June 2020, the Danish government enacted a climate law setting goals to reduce carbon emissions by 70% by 2030 and achieve carbon neutrality by 2050. Notably, PtX was selected as a core policy for achieving these goals. According to a government report released last January, Denmark plans to build an artificial island by 2030 to establish an 8GW wind farm for the PtX project. This capacity is equivalent to the output of eight nuclear power plants and is expected to enhance the economic feasibility of PtX technology, contributing to the global spread of green hydrogen technology.

Carbon neutrality is an urgent challenge humanity must solve. In this context, PtX is expected to be an important solution. The Danish government’s efficient support, including providing a clear vision and designing support measures for the PtX project, ensures that companies do not waste time and costs, which is remarkable. Denmark’s development of renewable energy and storage technology is the result of national consensus and policy support. The tradition of reclaiming wasteland to develop pastureland and dairy farming, creating LEGO, and developing insulin continues with PtX technology. Denmark’s successful response to carbon neutrality was likely possible because of the national consensus that ‘technology is an inexhaustible gold mine.’

Kim Young-woo, Research Fellow, Institute for Shared Growth