The Danish government has announced a political agreement about the phasing in of a taxation scheme for zero-emission cars. The Danish hydrogen community is pleased that this agreement entails a prolonged and complete tax exemption for fuel cell electric vehicles (FCEVs) until 2022. The agreement means that FCEVs are placed on an equal footing with battery electric vehicles (BEVs) in the taxation model that is to be introduced from 2022 to 2024. As a part of the agreement and to incentivize consumers to choose zero-emission technologies, a tax deduction for batteries was introduced in the agreement proposal. Hydrogen Denmark has been successful in ensuring the implementation of an FCEV-equivalent to this tax deduction opportunity in the final agreement.

This is an important step in the green transition of the Danish transport sector and will facilitate the implementation of hydrogen and fuel cell technologies. FCEVs enables the consumer to keep the flexible mobility they are used to from fossil fueled vehicles as they are refueled in the same manner and time as with gasoline or diesel, but without any harmful emissions as an FCEV only emits a small amount of water vapor.

Tejs Laustsen Jensen, CEO of Hydrogen Denmark:

“It is essential for the success of the green transition that we push forward with the implementation of hydrogen and fuel cell technologies. The tax exemption and the deduction scheme are important elements in incentivizing consumers to choose zero emission vehicles and this will facilitate a further roll-out of FCEVs in Denmark. With the support of the EU-project H2ME2 we are making great progress with the advancement of FCEVs and hydrogen infrastructure in Denmark and two H2ME2-hydrogen refueling stations are scheduled to open within the next few months. We are glad to see that Parliament is pushing this agenda on both private and public transportation. This will not only benefit the efforts to decarbonize the transport sector but also advance the Danish hydrogen and fuel cell industry in the rapidly developing global hydrogen economy.”

Executive Director at the FCH JU, Bart Biebuyck says:

”I welcome the prolonged tax exemption for FCEVs in Denmark until 2022. This comes as a clear recognition of the wider benefits brought by the FCEV both to vehicle users and society such as improved local air quality, enhanced comfort and reduced reliance on imported fuels. Aiming to overcome the challenges to the commercial uptake of FCEVs, the Hydrogen Mobility Europe (H2ME) projects helped to significantly expand the number of hydrogen vehicles and the refuelling network in Denmark and across Europe”.

Read the official press release from Brintbranchen Hydrogen Denmark here.