Topsoe SOEC Stack Module Factory

Introduction

The project aims to construct a 500 megawatt (MW) Solid Oxide Electrolysis Cell (SOEC) stack module manufacturing facility in Herning, Denmark. This initiative will enable Topsoe to deliver the highly efficient SOEC electrolyser technology.

Importance of the Technology

This technology is essential for producing the renewable fuels and chemicals that are needed in hard-to-abate sectors, where direct electrification is not currently feasible. With a 100% relative greenhouse gas emission avoidance compared to the reference scenario, the project will support the swift decarbonisation of carbon-heavy industries and, by extension, contribute to the European Union's efforts to reach its climate neutrality target by 2050.

Production Timeline

Production will begin in 2024 with an initial annual electrolyser stack module manufacturing capacity of 500MW. By 2031, the facility's production is projected to grow to 1.4 gigawatt (GW) annually. There is further potential to expand this capacity to 5GW annually.

Efficiency and Cost Reduction

The defining innovative feature of the technology is its efficiency, leading to estimated electricity savings of 20-30% compared to current production methods. These electricity savings are therefore driving down the levelized cost of hydrogen production (LCoH), making green hydrogen and its derivatives competitive alternatives to fossil fuels. Overall, the project plans to reduce greenhouse gas emissions by approximately 7.6 million tonnes of CO2 equivalent over the first ten years of operation.

Benefits for Hard-to-Abate Sectors

The project is particularly beneficial for hard-to-abate sectors, such as steel manufacturing and fertilizer production, which have prevalent high operational temperatures and technologies that produce waste heat.

Utilization of Waste Heat

This is because the waste heat from these processes can be channelled back into the electrolysis, enhancing energy efficiency, minimising costs, and ultimately producing more green hydrogen per total power input. Furthermore, the environmental footprint of the technology is notably smaller than alternative electrolysis technologies as it avoids the need for noble metals, providing a further competitive advantage.

Job Creation and Economic Impact

The manufacturing facility will also create 200 direct job opportunities. Additionally, the facility will indirectly create numerous additional job opportunities spanning:

• Supply chain operations
• Building and maintenance
• Infrastructure
• Logistics
• And more

This manufacturing facility will also further add to Herning’s growing reputation as a centre for climate-focused businesses and contribute to the growing local economy.