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H2 Logic welcomes Danish extension of FCEV tax exemption and the taxation of long-range BEV’s

H2 Logic welcomes Danish extension of FCEV tax exemption and the taxation of long-range BEV’s

The Danish Government has announced a political agreement on extending the present tax exemption of FCEV’s for an additional three years throughout 2018. In addition the Government will gradually introduce taxes on BEV’s based on vehicle efficiency and price, thus mainly taxing high-end BEV’s with long driving range. The Danish tax regime pioneers a relevant political targeting of battery and fuel cell technologies to address different vehicle market segments.

In Denmark up to 180% registration tax and 25% VAT is normally applied on the base vehicle price meaning that a €17.000 gasoline vehicle reaches a total consumer price of more than €50.000. The FCEV tax exemption therefore provides a substantial indirect price-subsidy that makes the technology almost price competitive with gasoline today in Denmark.

In addition H2 Logic in collaboration with oil and gas companies are active on establishing a countrywide network of hydrogen fueling stations across Denmark. Today seven hydrogen fueling stations are in operation in Denmark, and with additional four planned onwards 2016 more than 50% of the population will be within convenient reach of hydrogen fueling.

The Danish tax exemption for BEV’s and FCEV’s has been in place since 2012 and was set to expire by end of 2015. The political negotiations on a possible extension was complicated by the massive sale in Denmark of high-end BEV’s with long range, that due to high battery cost and thus vehicle price indirectly caused a substantial loss of tax revenues.

The new decided Danish tax regime for BEV’s and FCEV’s is pioneering an alignment with the technology approach of the major car manufacturers. Batteries are targeted for use in smaller vehicles where short range and long charging time is accepted, whereas fuel cells are targeted for larger vehicles where range and fueling time are to match that of gasoline.

From 2016 BEV’s in Denmark will be taxed depending on the vehicle efficiency and size, thus incentivizing use of batteries in smaller vehicles where shorter range helps to lower the price and thus the loss of tax revenues. The continued exemption of FCEV’s will instead incentivize use of fuel cells for larger vehicles with long range, where cost reduction potential is greater as the high cost and thus loss of tax revenue from a long-range battery is avoided.

Jacob Krogsgaard, CEO of H2 Logic states:

“H2 Logic welcomes the continued Danish tax exemption for FCEV’s. This will ensure Denmark as one of the countries in the world with the best FCEV incentives. For H2 Logic the hydrogen fueling station network in Denmark will continue to be a strong showcase and platform for export of our technology to other countries. The pioneering Danish tax differentiation between BEV’s and FCEV’s will also incentivize that the technologies are targeted for their relevant vehicle market segments.”

About H2 Logic A/S
H2 Logic A/S is a leading manufacturer of H2Station® hydrogen refueling stations that provides fuel cell electric vehicles with the same fast fueling and long range as conventional vehicles today. Since incorporation in 2003 H2 Logic has invested significantly in R&D that has brought H2Station to a level where products are offered for the early market for roll-out of larger networks of hydrogen refueling stations. H2 Logic is part of NEL ASA listed on the Oslo Stock Exchange. NEL ASA is a leading global supplier of hydrogen technology for industrial / energy purposes, and has made over 500 deliveries in more than 50 countries. www.nel-asa.com