Topsoe has chosen NER (New Energy Risk), a provider of technology performance insurance, as the preferred insurance partner for Topsoe’s SOEC hydrogen electrolyzer products. The partnership follows NER’s completion of detailed technical due diligence of Topsoe’s SOEC electrolyzer technology and enables Topsoe’s customers to deploy NER’s technology performance insurance on projects using SOEC technology—enhancing bankability and enabling a lower cost of capital.

The completion of technical due diligence streamlines the offering of performance insurance to eligible projects, who can benefit from improved timelines and increased certainty of financing success.

The insurance product from NER is a performance coverage for commissioning, ramp-up and operations. This includes cover for technical issues leading to temporary or permanent performance drop where coverage is provided to support cash flow and/or project revenue.

Providing insurance coverage for electrolysis technologies such as Topsoe’s SOEC accelerates the delivery of green hydrogen. Momentum for green hydrogen projects is growing and production levels can potentially increase substantially by 2030 if all announced projects are realized. According to the International Energy Agency's (IEA) Global Hydrogen Review 2023, the annual production of hydrogen may reach 38 million tonnes per year in 2030, with almost 75% coming from electrolyzers running on renewable energy.

Topsoe has made significant progress in the development of its SOEC technology having completed the construction of its first SOEC factory in Herning, Denmark. The factory has started production with a view to begin commercial supply in Q1 2025.

To improve overall cost curve for SOEC deployment, Topsoe is also collaborating with ABB and Fluor, as the parties in June 2024 entered into an alliance to use learnings taken from construction of the Herning factory to build its next factory more efficiently and through a standardized concept.

Topsoe’s solid oxide electrolyzer cells (SOEC) electrolysis technology is a modular design that operates at significantly higher temperatures compared to other electrolyzer technologies—a tested and proven process that enables industrial-scale production of green hydrogen using renewable electricity.

When coupled with waste heat from downstream production (from processes producing ammonia, methanol or steel production), Topsoe’s SOEC technology will produce 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 SOEC electrolyzers have proven their efficiency through a successful performance test at Topsoe’s SOEC demonstration plant in Frederikssund, Denmark. The test revealed high levels of stability under industrial conditions.

New Energy Risk is a pioneer of large-scale, breakthrough technology performance insurance solutions. The company provides complex risk assessment and serves as a bridge between technology innovators, financiers, and insurers. Insurance policies are administered through New Energy Risk affiliate, Complex Risk and Insurance Associates, LLC, CA License.