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Topsoe announces plans for new state-of-the-art us electrolyzer factory

Topsoe announced plans to build a cutting-edge factory in Chesterfield, Virginia. The factory will manufacture advanced, energy efficient solid oxide electrolyzer cells (SOECs) that are essential to the efficient production of clean H2 and derivatives like eAmmonia and eMethanol.

The decision by Topsoe to announce its plan for its largest investment in the U.S. to date comes after the company received an allocation for nearly $136 MM in federal Section 48C tax credits from the Inflation Reduction Act. Subject to final investment decision, this more than $400-MM investment is expected to create at least 150 direct jobs in Virginia and more than 1,000 indirect jobs through the value chain.

With a planned capacity of more than 1 GW, the factory's output of electrolyzer stacks will enable an annual greenhouse gas emission avoidance of up to 2 MMt of CO2e – the equivalent of avoiding the emissions from more than 400,000 gasoline-powered passenger vehicles driven for a year.

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 where direct electrification is not a viable solution. Topsoe’s SOEC technology increases electrolyzer efficiency up to 30% compared to other electrolysis technologies, and thereby produces more H2 per total power input.

“The Inflation Reduction Act represented a bold step towards maintaining American leadership in manufacturing, creating the next generation of clean energy jobs, and combatting climate change. I’m glad to see that vision executed in Chesterfield County with the announcement of a new Topsoe manufacturing facility. Thanks to tax credits from this landmark law, Virginia will continue to power our nation and lead the clean energy transition by creating good-paying manufacturing jobs across the Commonwealth,” said U.S. Senator Mark R. Warner.

Roeland Baan, CEO at Topsoe said, “We are thrilled to announce our plans for a new state-of the art U.S. facility that will manufacture SOEC, the key element to the world’s most efficient electrolyzer technology for producing clean H2. Through legislation like the Inflation Reduction Act and strong support from individual states such as Virginia, the U.S. government is helping to accelerate the clean energy transition. With our strong dedication to innovation, we will help the U.S. achieve its goals of driving down the cost of clean H2 and delivering clean energy jobs.”