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Denmark goes to Texas: Danish companies explore export opportunities in the Lone Star State

In March, 2023, more than 30 Danish wind energy and hydrogen companies visited Texas to explore market opportunities and developments in one of the largest growing energy industries in the US. 

These years, Texas faces a significant energy transition, which creates new opportunities for Danish businesses. As a result, in March, more than 30 Danish energy companies participated in a tour of the Lone Star State. The objective was to promote Danish export and establish partnerships across the Atlantic.

There are plenty of good reasons for Danish companies to visit Texas. For starters, the state produces more energy than any other state in the US, which means good news for Danish companies specializing in renewable energy and the green transition.  

One of the companies that have already established itself in the large state in the south is Ørsted:  

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Texas is the leading market for competitive renewable energy in the US, and we are excited by the opportunities the state has to offer. Ørsted's projects in Texas encompass the full spectrum of renewable energy technologies, including wind, solar, storage, and green hydrogen. With the state's historic energy expertise, skilled workforce, abundant natural resources, and high demand for electricity, we look forward to continued growth and success in the state of Texas.
says Susan Sloan Head of Onshore Government Affairs and Market Strategy, Ørsted

Aside from Ørsted, several other Danish companies, including COWI, European Energy, MFT Energy, and Biogasclean, have also established themselves in the region. This was celebrated during a reception at the Texas Senate in Austin on March 7. Here the five Danish companies were welcomed to the energy industry in the state by Texas Secretary of State, Jane Nelson:  

"Texas is the home of innovation, and we are excited to welcome more Danish business leaders to explore the economic opportunities our state has to offer. Tonight, we committed to exchanging ideas, learning more about one another, and looking for ways that we can collaborate with top Danish government and business leaders to strengthen the diplomatic and commercial relationships between Texas and Denmark", says Nelson. 

Along with the five Danish companies, Nelson was joined by Minister for Industry, Business and Financial Affairs Morten Bødskov, the Danish Parliament's Committee for Business, and a diverse group of more than 30 Danish energy companies. These companies took part in a delegation trip to Texas to explore business opportunities in the region and strengthen collaboration between Denmark and Texas. For the Aarhus-based companies, MFT Energy, Texas isn't new territory:  

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"Texas is where we began our US trading in 2020, and the state has been at the forefront of integrating renewable energy into the grid and has shown the way for renewables and the green transition in North America. Therefore, we consider Texas as our US "home turf" and a natural place to establish our physical presence in North America, says Brian Madsen, Director & Partner, US Trading for MFT Energy",
Brian Madsen Director & Partner, US Trading, MFT Energy
COWI, European Energy, MFT Energy, and Biogasclean receiving a "welcome-armadillo" from Texas Secretary of State, Jane Nelson, and Minister for Industry, Business and Financial Affairs, Morten Bødskov on March 7.

A new Epicenter for renewable energy

There is indeed good reason to investigate the opportunities in the state's energy industry, which for the past years, has experienced massive growth. In addition to being a leader in energy production, Texas also ranks first as the state with the most installed wind turbines in the US. Today, approximately 40 GW of the US's 135 GW total production of wind energy is produced in Texas. This creates a great export potential of Danish energy technology. 

According to Kasper Frölich from the engineering and architecture consulting company COWI, the growing energy market in Texas is a great contributor to their growing success:

"COWI's green energy business is currently growing by 20 pct. Annually, not least due to the increased activity in Texas and the US in general. In Texas, we can feel the overall political support on a local- as well as federal-level for a greener US."   

"To support the significant growth, we are expanding our renewable energy team and competencies in the US, including in Houston. Our establishment in the region has been warmly received, and we can clearly feel the Texan hospitality", says Kasper Frölich, Business Development Director for Green Fuels & CCUS, from COWI.  

Aside from Texas' large market for wind energy, there is a significant focus in the state on becoming a leading supplier of other alternative energy sources. In recent years, the development of hydrogen, in particular, has been at the forefront of great ambitions, both politically and commercially. This has been weighing heavily on the biogas technology supplier Biogasclean's decision to establish a subsidiary in what Texans refer to as the energy capital of the world, Houston: 

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"Through our export activities to the US, we have witnessed explosive development in the American energy sector – especially in recent years. As a technology supplier to both the biogas and Power-to-X industries, it has been evident that Texas is, and will continue to be, a resource energy hub, where both private and public players have a great interest in strengthening the state's leading position in the green transition and allocate resources to welcome innovative foreign companies",
says Cecilie Engell Sørensen General Manager, Biogasclean Americas Inc.

This is also something that the company European Energy can attest to. The company has already set up an office in the state's capital, Austin: 

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Austin is a perfect starting point for expanding our renewable energy and Power-to-X activities from Denmark to the US, and especially the Texan market. We are happy about the warm welcome from the Texas Secretary of State and the great support from the Danish authorities, Minister for Industry, Business and Financial Affairs, Morten Bødskov, and the Committee for Business to support our ambitions to exploit market opportunities by bringing know-how and experiences across the Atlantic
says Lorena Ciriello Regional Manager US, European Energy

Fron-runners in green energy solutions

Denmark's many years of experience in the development of, among others, wind turbines and biogas have made Danish companies front-runners in green energy.
With Texas' development towards becoming an essential player in the green transition, there is fertile ground for exchanging knowledge and technologies across borders.

COWI, European Energy, MFT Energy, and Biogasclean's recent establishment in the region and the huge interest from the more than 30 Danish companies on the energy delegation to Texas in March prove that this exchange is already well underway. 

Export of Danish technologies and goods to Texas is growing. In recent years, Danish companies have invested heavily in the region. Last year, Texas was the US state where Danish companies had the most employees.

The hosts of the energy delegation experienced in the planning process, both from Danish companies and US counterparts, testify that there is a demand and market for Danish renewable energy solutions in the region. The delegation was a result of close collaboration between the Confederation of Danish Industries, the Danish Chamber of Commerce, and the Trade Council of Denmark in North America's Energy and Environment Team. 

Minister for Industry, Business and Financial Affairs, Morten Bødskov, who participated in several events during the week-long delegation, says: 

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It has been a fantastic experience to visit Texas together with over 30 Danish companies. It is clear that there is great potential for using Danish business skills in the US' green transition, which the Inflation Reduction Act can help further push. This is why it is important that we show the American business community the great opportunities and benefits of investing in Danish green solutions. 

- Morten Bødskov Minister for Industry, Business & Financial Affairs 

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