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April 19, 2024

Topsoe Announces Plans for New State-of-the-Art US Electrolyzer Factory for Clean Hydrogen

  • Federal tax credits from the Department of Energy under the Qualifying Advanced Energy Project Credit (48C) will support construction of Topsoe’s second Solid Oxide Electrolyzer Cell (SOEC) factory.
  • The new factory will help accelerate US domestic clean energy by manufacturing SOEC, the key element to the world’s most efficient electrolyzer technology. The cells will be used to produce clean hydrogen, which is essential for the US and global energy transition.
  • The factory will be Topsoe’s largest investment in the US to date. A Final Investment Decision (FID) will be based on an assessment of market conditions and developments.
  • If FID is taken, the facility, combined with the company’s SOEC factory in Herning, Denmark, will make Topsoe the largest SOEC manufacturer in the world.

Topsoe, a global leader in carbon emission reduction technologies, announced plans to build a cutting-edge factory in Chesterfield, Virginia. The factory will manufacture advanced, energy efficient Solid Oxide Electrolyzer Cells (SOEC) that are essential to the efficient production of clean hydrogen and derivatives like eAmmonia and eMethanol.

The decision by Topsoe to announce its plan for its largest investment in the US to date comes after the company received an allocation for nearly $136 million in federal Section 48C tax credits from the Inflation Reduction Act.

Subject to Final Investment Decision, this more than $400M investment is expected to create at least 150 direct jobs in Virginia and more than 1,000 indirect jobs through the value chain.

With a planned capacity of more than 1 GW, the factory's output of electrolyzer stacks will enable an annual greenhouse gas emission avoidance of up to 2 million tonnes CO2e – the equivalent of avoiding the emissions from more than 400,000 gasoline-powered passenger vehicles driven for a year.

Electrolyzers are key for decarbonizing energy-intensive industries, like steel, mining, and long-distance transportation that account for approximately 30[1]% of global greenhouse gas emissions, and where direct electrification is not a viable solution.

Topsoe’s SOEC technology increases electrolyzer efficiency up to 30% compared to other electrolysis technologies, and thereby produces more hydrogen per total power input.

Governor Glenn Youngkin said: 

“I am thrilled that Topsoe has chosen the great Commonwealth of Virginia for its new, state-of-the-art factory that will be key to scaling clean hydrogen production. Virginia’s robust workforce, strategic location, and top business climate provide the necessary tools for Topsoe to continue to grow as a leader in the clean energy industry."   

US Senator Mark R. Warner said:
“The Inflation Reduction Act represented a bold step towards maintaining American leadership in manufacturing, creating the next generation of clean energy jobs, and combatting climate change. I’m glad to see that vision executed in Chesterfield County with the announcement of a new Topsoe manufacturing facility. Thanks to tax credits from this landmark law, Virginia will continue to power our nation and lead the clean energy transition by creating good-paying manufacturing jobs across the Commonwealth.”

US Senator Tim Kaine said:
“I’m thrilled that Topsoe will be setting up a state-of-the-art facility in Chesterfield County to help manufacture clean energy components. This wouldn’t have been possible without the investments we made in the Inflation Reduction Act, which I was proud to have helped pass in the Senate by one vote. I look forward to seeing how this project will boost economic growth, create jobs, and help us build a clean energy future.”

US Representative Jennifer McClellan said:
“This new Topsoe facility in Chesterfield County will create hundreds of new jobs and stimulate millions of dollars in economic activity right here in Virginia’s Fourth. I will continue fighting with Senators Warner and Kaine to supercharge our transition to a clean-energy future and bring federal investments to our Commonwealth.”

Roeland Baan, CEO at Topsoe, said:
“We are thrilled to announce our plans for a new state-of the art US facility that will manufacture Solid Oxide Electrolyzer Cell stacks (SOEC), the key element to the world’s most efficient electrolyzer technology for producing clean hydrogen. Through legislation like the Inflation Reduction Act and strong support from individual states such as Virginia, the US government is helping to accelerate the clean energy transition. With our strong dedication to innovation, we will help the US achieve its goals of driving down the cost of clean hydrogen and delivering clean energy jobs.”

Kim Hedegaard, CEO at Power-to-X at Topsoe, said:
“We at Topsoe believe in a sustainable future created by science. With this new facility, we will help drive down the cost of clean hydrogen by employing our innovative SOEC technology which is up to 30% more efficient than competing technologies. Our factory will ensure the economic and environmental aspects of the hydrogen economy are felt in the decades to come.”

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 up to 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.   

What is Power-to-X
Power-to-X refers to a range of technologies that convert electricity, particularly from renewable sources, into other forms of energy or products. This conversion process is primarily driven by the production of hydrogen through electrolysis – a process in which water is split into hydrogen and oxygen using electricity. The resulting hydrogen, known as green or clean hydrogen when produced using renewable electricity, can either be used directly or serve as a base reactant to produce a variety of energy carriers and fuels. By changing the form of renewable energy from electricity to molecules, it becomes better suited to decarbonizing industries that cannot be directly electrified fully and at scale.     

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

For more information, please contact:
Gabriel Martinez, External Communications Manager
Phone: +45 26 46 78 94

Ulrik Frøhlke, Media Relations Manager
Phone: +45 27 77 99 68 

[1] World Economic Forum

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