The plant will have a manufacturing capacity of 500 MW per year, with an option to expand to 5 GW.

Topsoe CEO, Roeland Baan, said, “The case for using electrolysis to produce green fuels is now well established, but manufacturing capacity has always been the challenge. We are facing this challenge head on.”

He said Topsoe is dedicated to taking the lead on scaling power-to-x technology to help drive the energy transition, and investing over DKK2bn to meet demand and address the fundamental supply weakness.

Baan said it marked the single biggest investment in the company’s history, highlighting its commitment to driving the energy transition.

Sundus Cordelia Ramli, CCO of Topsoe’s Power-to-X division, said there is a “genuine trust” in its SOEC electrolyser technology, built on years of technological experience.

She said, “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 decarbonisation unarguable. We already have 500 MW of pre-sold capacity and are in discussions with other potential offtake partners as well.”

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 electrolyser manufacturing capacity by 2025. 

Baan added that it was a “major statement of intent” but also a reality that industry cannot lead this energy transition alone.

He said, “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 electrolyser production right here in the EU.”

Topsoe is already engaged in several projects to produce green hydrogen, green ammonia, green methanol and green fuels.

An example is the Helios project in NEOM, Saudi Arabia, announced in July 2020, which includes the world’s largest ammonia loop.