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Topsoe secures EUR 10.8M for Power-to-X upscaling

Topsoe secures EUR 10.8M for Power-to-X upscaling
Topsoe is developing and industrializing solid oxide electrolysis cells (SOEC) for the highly efficient production of hydrogen by electrolysis of water. The company says that its SOEC electrolyzer delivers more than 90% energy efficiency when using green power to produce hydrogen, whereas current alkaline electrolyzers are at 70% (photo courtesy Topsoe).

The Danish Board of Business Development (Danmarks Erhvervsfremmebestyrelse) is granting up to DKK 88.8 million (≈ EUR 11.9 million) to a partnership between Topsoe A/S, Denmark’s Technical University (DTU), and Aarhus University (AU) to support innovation activities related to upscaling and globally deploying Topsoe’s solid oxide electrolyzers (SOEC) technology.

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In the light of the ambitious Danish Power-to-X strategy and EU’s green hydrogen goals, which have now increased the demand for electrolyzers with the recent REPowerEU, Topsoe announced in March 2021 its intention to build the world’s most advanced industrial-scale electrolyzer production facility to speed up commercial-size PtX.

Power-to-X technology will play a central role in the green transition, and right now we see strong momentum for green energy solutions throughout Europe, said Roeland Baan, CEO of Topsoe.

Support for tech upscaling research

The Danish Board of Business Development supports this work by granting up to DKK 88.8 million (≈ EUR 11.9 million) to a partnership between Topsoe, DTU, and AU, as the partners’ research and innovation are strongly called for to address key technology risks needed for upscaling.

Topsoe is to receive up to DKK 80.3 million (≈ EUR 10.8 million) of the total grant sum.

At Topsoe, we are pioneering the Power-to-X landscape with our SOEC technology offering 30 percent higher efficiency than remaining technologies and even at a lower cost, and we are extremely happy to receive the support and trust from the Danish Board of Business Development to further this technology and pave the way for faster deployment of Power-to-X nationally and globally, Roeland Baan said.

The plan is to place the manufacturing facility in Herning, Denmark.

The production facility will be able to support the GW-size green hydrogen projects that many developers have at the planning stage.

The funding is part of a strategy by the Danish government to develop and advance green hydrogen and fuels.

Power-to-X and hydrogen can become a new business adventure for Danish companies, and it is fantastic to see so many ideas about future green fuels coming from Danish companies. It speaks directly to the Danish strategy on Power-to-X to industrialize and upscale production making it easier and more competitive to produce green hydrogen said the Danish Minister for Industry, Business and Financial Affairs, Simon Kollerup.

The Danish Board of Business Development is supporting the development of green innovative technologies with a total of DKK 225 million (≈ EUR 30.2 million) from the REACT-EU program in which 19 projects applied for funding and 14 projects including Topsoe were awarded funding.

The projects must spend the funding no later than August 2023.

Power-to-X fuels as a replacement for fossil fuels will contribute to lowering CO2 emissions in Denmark and globally and it is vital that the companies have the will, ambitions, and skills to participate in the development. And we can see that they have, Minister Kollerup said.

Funding is a prerequisite to meeting the Danish Power-to-X strategy and the EU’s green hydrogen goals. Currently, a sufficient regulatory framework is missing to mobilize investment toward green hydrogen projects, which makes public funds critical for Topsoe’s large-scale ambitions in SOEC electrolysis.

The funding from the Danish Board of Business Development is the first phase in funding Topsoe’s scale-up activities in Power-to-X.

Further national and international funding will be necessary for the ambitious goals of Denmark and the Danish Power-to-X strategy.

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