Topsoe has signed a grant agreement with EU’s Innovation Fund for a total of €94 million for the construction of the company’s first electrolyzer manufacturing facility in Herning, Denmark. The factory is expected to be operational by 2024 and will produce Solid Oxide Electrolyzer Cells (SOEC).

The factory will manufacture Solid Oxide Electrolyzer Cells (SOEC) that are for the production of green hydrogen and its derivatives. The European Commission has announced a proposal to deploy 40 GW of hydrogen electrolyzer installation and 10 million tonnes of green hydrogen production.

Initial manufacturing capacity will be 500 MW of SOEC electrolyzers, with the option to expand further.

When used to produce green hydrogen, electrolyzers from Topsoe’s factory will reduce emissions by approximately 7.5 million tonnes of CO₂ equivalent over the first ten years of operation when compared to hydrogen produced from natural gas.

Topsoe’s SOEC electrolysis technology is of a modular design and operates at significantly higher temperatures compared to other electrolyzer technologies. When coupled with waste heat from downstream production (from processes producing ammonia, methanol, or steel production), Topsoe’s SOEC technology will produces 30% more hydrogen per total power input when compared to conventional electrolyzer technologies. It further allows for the lowest levelized hydrogen cost per megawatt volume, no matter the industry.

The Innovation Fund is the EU fund for climate policy, with a focus on energy and industry. It aims to bring to the market solutions to decarbonize European industry and support its transition to climate neutrality while fostering its competitiveness. The Innovation Fund is financed through the EU Emissions Trading System (EU ETC).