Topsoe awarded major grant from EU’s Innovation Fund to build its 1st SOEC factory

Topsoe, a global leader in carbon emission reduction technologies, has signed a grant agreement with the EU’s Innovation Fund totaling 94 million euros (USD$102.6 million) for construction of its first electrolyzer manufacturing facility in Herning, Denmark.

The grant is a recognition of Topsoe’s state-of-the art solid oxide electrolyzer cell (SOEC) electrolysis technology and the innovation inherent in building this first of its kind SOEC factory.

The factory is Topsoe’s single biggest investment to date.

Topsoe made its final investment decision for the facility in August 2022.

The factory will manufacture advanced, energy-efficient SOECs that are essential in the production of green hydrogen and its derivatives. 

Electrolyzers are key for decarbonizing energy-intensive industries like steel, mining and long-distance transportation that account for approximately 30 percent of global greenhouse-gas (GHG) emissions and cannot easily be electrified. 

In Europe, the EU Commission has announced a proposal to deploy 40 gigawatts of hydrogen electrolyzer installation and 10 million metric tons of green-hydrogen production.

When used to produce green hydrogen, electrolyzers from Topsoe’s factory will reduce emissions by approximately 7.5 million tons of CO2 equivalent over the first 10 years of operation when compared to hydrogen produced from natural gas.

“I’m very proud that the Innovation Fund acknowledges our technology leadership and our decision to take the first steps in increasing European electrolyzer-manufacturing capacity,” said Topsoe CEO Roeland Baan. “EU funding is key in supporting the industry’s endeavors to back the green-hydrogen economy and contribute to EU’s 2050 climate-neutrality target. We’re facing an immense task to decarbonize energy-intensive industries and long-distance transportation, and at Topsoe we’re doing our part. This grant from the EU demonstrates how public incentives and private innovation can bring us closer to net zero.”

Kim Hedegaard, CEO Power-to-X at Topsoe, added, “We’re incredibly honored to have been awarded such a prestigious grant. The energy transition demands careful use of resources to maximize outputs, and our SOEC technology is up to 30 percent more efficient than competing technologies. Our Herning factory is hopefully the first of many, enabling Topsoe to take a leading role in decarbonizing shipping, aviation, steel and more industries. This is an exciting step for Topsoe, Denmark and the EU.”

About the SOEC factory in Herning, Denmark

• Capacity: Initial manufacturing capacity of 500 megawatts of SOEC electrolyzers. Option to expand further.

• Operational: 2024

• Employment: The factory will employ 200 people once fully operational. The facility will also create numerous indirect job opportunities through its supply chain, building and maintenance to infrastructure, logistics and more.

• Size: 23,000 square meters

• Location: Haldor Topsøes Vej 2, 7400 Herning, Denmark

About SOEC

Topsoe’s 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 30 percent 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.

About the Innovation Fund

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.