Topsoe has signed a grant agreement with EU’s Innovation Fund for a total of €94m for its Solid Oxide Electrolyzer Cells (SOEC) electrolysis technology to produce green hydrogen.
The funds will support Topsoe building a SOEC factory in Herning, Denmark, which represents the developer’s single biggest investment to date.
The factory is expected to be operational by 2024 with a 500MW capacity with the option to scale further.
It 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 40GW 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 7.5m tonnes of CO2 equivalent over the first 10 years of operation when compared to hydrogen produced from natural gas.
Topsoe chief executive Roeland Baan 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 are 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.”