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54 min ago 3 min read
Topsoe will “hibernate” its seven-month-old, EU-subsidised solid oxide electrolyser factory in Denmark, citing weak hydrogen demand.
The decision comes less than two months after the Danish technology group announced a into how it would commercialise the green hydrogen technology.
As part of the move, the company plans to validate large-scale manufacturing at its 500MW Herning factory, which with support of a €94m ($109.5m) EU Innovation Fund grant, and then “hibernate” the facility until demand improves.
In the near term, the firm intends to “commercialise” the technology through “key partnerships,” specific development, and demonstration projects.
Topsoe has also officially abandoned plans for a second solid oxide electrolyser factory in the US, which was also set to benefit from $136m in federal tax credits.
CEO Elena Scaltritti said “slower-than-expected” development in clean hydrogen markets, combined with global market uncertainty, was behind the decision.
“It is a tough but necessary decision to strengthen our position in the new market reality,” she said.
The company expects restructuring charges and impairments of DKK 3.5bn ($546m) to DKK 3.9bn ($608m). It expects to save DKK 450m ($70.1m) to DKK 550m ($85.7m) annually.
However, Topsoe has maintained its full-year revenue guidance of DKK 7.6bn ($1.18bn) to DKK 8.4bn ($1.3bn).
Under the plans, 440 global roles within Topsoe’s Power-to-X business are expected to be “impacted.” The firm said it will inform Danish employees by the end of May after consultation.
Scaltritti previously told H2 View that the clean hydrogen sector found itself in a
The CEO warned that demand for clean hydrogen was lower and further out into the future than previous industry estimates.
“The demand will not go back to what was projected even two years ago,” she said. “I still believe there will be demand, but it will probably not be as widely spread as we thought.”
It’s a stark contrast from the messaging at the time of the Herning factory’s opening. Kim Hedegaard, Topsoe CEO of Power-to-X, told a virtual press briefing that the plant would be “fully loaded” within just a few years.
Across the board, electrolyser manufacturing outpaces real-world installations. However, solid oxide remains nascent, with no large-scale systems operating globally.
