Topsoe awarded EUR 94 million from the EU’s Innovation Fund to build SOEC factory

• The EU's Innovation Fund has awarded Topsoe EUR 94 million for the construction of the company’s first electrolyzer manufacturing facility in Herning, Denmark. It is the largest investment in Topsoe’s history.
• The factory is expected to be operational by 2024 and will produce Solid Oxide Electrolyzer Cells (SOEC).
• Initial factory capacity is 500 megawatts (MW) with the option to scale further.

Topsoe, a global leader in carbon emission reduction technologies, has signed a grant agreement with EU’s Innovation Fund for a total of EUR 94 million. The grant is a recognition of Topsoe’s state-of-the art 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.

The factory will manufacture advanced, energy efficient Solid Oxide Electrolyzer Cells (SOEC) 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% of global greenhouse gas emissions and cannot easily be electrified. In Europe, the EU Commission has announced a proposal to deploy 40 GW of hydrogen electrolyzer installation and 10 million tonnes of green hydrogen production.

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.

Roeland Baan, CEO at Topsoe, said:
“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. 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, said:
“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% 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 megawatt 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 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.

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 (EU ETC).

Disclaimer
Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or CINEA. Neither the European Union nor the granting authority can be held responsible for them.

About Topsoe
Topsoe is a leading global provider of technology and solutions for the energy transition. We combat climate change by helping our customers and partners achieve their decarbonization and emission reduction goals. 

Based on decades of scientific research and innovation, we offer world-leading solutions for transforming renewable resources into fuels and chemicals for a sustainable world, and for efficient and low-carbon fuel production and clean air.

We were founded in 1940 and are headquartered in Denmark, with over 2,800 employees serving customers all around the globe. To learn more, visit www.topsoe.com.  

For more information, please contact: 
Ulrik Frøhlke, Media Relations Manager
Phone: +45 27 77 99 68 
Mail: ulfr@topsoe.com