Denmark Geothermal Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Denmark Geothermal Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Denmark geothermal energy market is expected to grow at a CAGR of more than 1% during the forecast period. The geothermal power market is mainly driven by factors including an efficient and sustainable energy source and growing adoption of renewable energy. The limited burning of fuels and minimal emission of carbon dioxide and other greenhouse gases favor the adoption of geothermal energy. Geothermal energy can generate electricity with less environmental impact and at a lower cost than fossil fuels such as oil and coal. On the other hand, the lucrative market for alternative clean energy sources such as solar and wind are likely to hinder the market growth.

Key Highlights

• Direct heat utilization which is one of the major applications of geothermal energy is expected to drive the market during the forecast period.
• For Denmark’s aim to achieve a carbon-neutral country by 2050, geothermal heating is considered and is likely to bring great opportunities in utilizing geothermal on a large scale, and not least as a new Danish export opportunity. In addition, with the latest technology makes it economically feasible to initiate geothermal projects, which in turn, likely to provide an opportunity in the market in the future.

Key Market TrendsDirect Heat Utilization is Expected to Drive the Market

• Denmark has moderate temperature gradients, but widespread geothermal aquifers and district heating networks in most of the Danish towns supplying heat to approximately 60% of Danish households. Denmark’s district heating production has reached 55 TJ in 2018.
• Geothermal energy is a renewable energy source with vast potential. It carries the benefits of low CO2 emissions, low running costs, local production and high security of supply. And after investments, it has a long life. The geothermal reserves in the Copenhagen area in Denmark could cover 30-50% of the areas district heating needs for the next several thousand years.
• In Denmark, low-temperature geothermal heat is used in district heating as one of many energy sources. The technology utilises energy obtained from porous sandstone beneath some Danish cities. There are three geothermal plants in operation in Denmark. They are based in Thisted, Sønderborg and Amager (Copenhagen). In addition, a number of licences have been granted to explore the opportunities for using geothermal energy in certain areas.
• There is a great potential for geothermal energy in Greater Copenhagen, and there is a broad consensus that geothermal energy will play a role in the green heat supply of the future.
• The deeper geothermal resources in Denmark relates to two deep sedimentary basins: the Danish Basin (including the Sorgenfrei–Tornquist Zone and the Skagerrak-Kattegat Platform) and the North German Basin. In Denmark shallow Geothermal Energy is commonly described as Ground Source Heating and Cooling which covers horizontal collectors as well as borehole heat exchangers (vertical or inclined) and groundwater based open loop systems.
• Hence, the increasing demand for energy, along with the potential of untapped geothermal resources, the demand for geothermal energy technologies is expected to increase during the forecast period.

Increasing Wind Energy Deployment is Likely to Hinder the Market Growth

• Among all the renewable power generation advances accessible in the country, the wind has shown potential development, pulling in significant government spending. The policy landscape of governments and associations are focused basically on wind energy resources.
• Wind energy plays a central role in Denmark’s ambitious goal to remove fossil fuel from all electricity generation. Denmark’s location plays a pivotal role in its production of onshore and offshore wind, given that it experiences strong winds coming from the North Sea and the Baltic Sea.
• In Denmark, the wind energy source is dominating the renewable energy mix in 2019 and is expected to continue dominating in the forecast period. This is because of the declining cost of the technology and the expanded adoption of wind energy by various sectors in the country.
• Wind accounted for 47% of Denmark’s power usage in 2019 and the installed wind capacity has reached 6117 MW. hence the wind energy market is likely to hinder the geothermal energy market during the forecast period.

Competitive Landscape

The Denmark geothermal energy market is consolidated. Some of the key players in the market include A.P. Moller Holding A/S, Geothermal Operations Company, Gate 21, and Danfoss A/S.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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