Topsoe de-risks SOEC electrolyzers for green hydrogen through insurance partnership with New Energy Risk

• New Energy Risk (NER) has been selected as the preferred insurance partner for Topsoe’s SOEC hydrogen electrolyzer products.
• Partnering with NER represents an important milestone for the deployment of Topsoe’s solid oxide electrolyzer cells (SOEC) as it de-risks their development and customers’ green hydrogen and Power-to-X projects.
• Providing insurance coverage for electrolysis technologies such as Topsoe’s SOEC’s can further improve rollout timelines of green hydrogen projects to deliver on growing global demand.

Topsoe, a global leader in carbon emission reduction technologies, has chosen NER, 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.

Sundus Cordelia Ramli, CCO Power-to-X at Topsoe, said:
“Our partnership with NER is an important milestone to accelerate the delivery of our customers’ green hydrogen projects and is a testament to the confidence in our technology. As the insurance provides performance coverage for commissioning, ramp-up and operations it’s a strong de-risking tool supporting customers and investors with increased bankability for projects that involve our SOEC electrolyzers.”

Tom Dickson, CEO of New Energy Risk, added:
“We see the promise in the hydrogen market and appreciate that Topsoe has put their trust and confidence in NER’s capabilities to deliver value and support customer adoption and financing of their electrolyzer technology.”

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[1], the annual production of hydrogen may reach 38 million tonnes per year in 2030, with almost 75 percent coming from electrolyzers running on renewable energy.

SOEC factory in Herning
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.

About SOEC
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.

About New Energy Risk
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. Learn more: https://newenergyrisk.com/.

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

[1] https://www.iea.org/reports/global-hydrogen-review-2023/executive summary