Estonian electrolysis cell manufacturer Stargate Hydrogen has received a grant from the European Union in the amount of 20.6 million euros, or $23.7 million, to expand its business and supply more affordable environmentally friendly hydrogen to steel, chemical and other energy-intensive industries. This is stated in the company's statement.
Financing from the EU Innovation Fund will allow to increase the production capacity of the plant in Tallinn. It is planned to increase the production of electrodes to 250 MW per year, double—glazed windows to 150 MW per year, and electrolysis systems to 66 MW per year.
"With the help of the Innovation Fund, we are really reaching a new level," said Marco Virkebaugh, Executive Director of Stargate Hydrogen. — "After the completion of the expansion, the Stargate plant will become one of the largest manufacturers of electrolysis cells in Europe."
The company's plant was launched last year. Initially, its capacity was 140 MW per year. At the time, Stargate claimed to be well positioned to reduce the cost of producing environmentally friendly hydrogen and help reduce emissions in the steel, fertilizer, and chemical industries.
The company claims that its alkaline electrolysis technology uses a ceramic catalyst instead of precious metals. This reduces dependence on imported raw materials and ensures more efficient hydrogen production. The Stargate website notes that this approach can significantly reduce the cost of hydrogen production and make electrolyzers more accessible to end users.
The high cost of environmentally friendly hydrogen remains one of the main barriers to its widespread adoption, despite the potential for reducing emissions. A recent report by the industry organization Hydrogen Council showed that the steel sector accounts for only 5% of the world's clean hydrogen purchase commitments. At the same time, in the near future, the industry is more likely to choose other methods of decarbonization.
Nevertheless, Stargate believes that the project will make it possible to avoid emissions equivalent to 3 million tons of CO2 in the future, including by supporting the wider adoption of affordable environmentally friendly hydrogen in industry, where the transition to it is particularly difficult.