Denmark is to invest $160 million annually in moving its infrastructure to become capable of supporting a hydrogen economy.

The Danish government has announced the plans, which will see the development of fuel cells and the infrastructure to support fuel cell vehicles across the country.

Among the planned funding, the Danish government is preparing to provide $33 million per year for the development of fuel cells, as part of the government's commitment to deliver green results by 2025.

In conjunction with its neighbours, Denmark is aiming to deliver a hydrogen economy across Scandinavia by 2012.

Hydrogen Link, a group combining experts from the Danish agency for science, technology and innovation, together with developers from companies, has welcomed the move, adding: "It is with great pleasure to see that hydrogen cars are now free of all taxes and that the intensions of the National Hydrogen and Fuel Cell strategy can be achieved."

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