Topsoe A/S, a global leader in high-performance catalysts and proprietary technologies for the chemical and refining industries, has announced that the Board has now taken the final investment decision (FID) to build the world’s largest solid oxide electrolysis cell (SOEC) electrolyzer manufacturing plant in Herning, Denmark.
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In March 2021, Topsoe disclosed plans to invest an undisclosed amount into a new manufacturing facility to produce highly efficient SOECs.
The case for using electrolysis to produce green fuels is now well established, but manufacturing capacity has always been a challenge. We are facing this challenge head-on, said Roeland Baan, CEO at Topsoe.
At 500 MW capacity per year, with an option to expand to 5 GW, the new facility in Herning will be the world’s largest SOEC manufacturing plant. It also represents the single largest investment for the company.
We are dedicated to taking the lead on scaling power-to-x technology to help drive the energy transition, and we are investing over DKK 2 billion to meet this demand and address this fundamental supply weakness. This is the single biggest investment in the company’s history, clearly highlighting our commitment to driving the energy transition, and we hope this huge facility will act as a catalyst for new investment in the future, Roeland Baan said.
Rapid build-out of Power-to-X
This is a rapid acceleration not just for Topsoe, but also for Denmark, and the EU towards a green energy transition while reducing dependence on fossil fuels.
There is genuine trust in us and our cutting-edge SOEC electrolyzer technology, built on years of technological excellence. With this new state-of-the-art manufacturing facility, we are taking power-to-x technology into a commercially competitive position, ultimately making the case for decarbonization unarguable, said Sundus Cordelia Ramli, CCO of Topsoe’s Power-to-X division.
Topsoe is also delivering on its REPowerEU ambitions when, in May 2022, a Joint Declaration was signed along with other industry leaders and the European Commission to commit to a tenfold increase of European electrolyzer manufacturing capacity by 2025.
Pre-sold capacity
According to Topsoe, SOEC electrolyzers consume less electricity than alkaline and Proton Exchange Membrane (PEM) technologies, since the process requires less power overall.
Furthermore, with the integration of a steam feed, the SOEC process becomes even more efficient.
We already have 500 MW of pre-sold capacity and are in discussions with other potential offtake partners as well, who find our electrolyzer technology attractive, and look forward to being able to make more announcements in due course, Sundus Cordelia Ramli said.
Construction is set to start in Herning in the second half of 2022. When fully operational, 170 people will work on the site.
This is a major statement of intent from Topsoe, but it is also a reality that industry cannot lead this energy transition alone. We look towards the EU and the Danish government for long-term incentives and supportive framework conditions to continue to accelerate the green hydrogen market and anchor large-scale electrolyzer production right here in the EU, ended Roeland Baan.
