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Topsoe to build a new factory in Virginia for solid-oxide electrolyzer cells

| By Mary Bailey

Topsoe A/S (Lyngby, Denmark) announced plans to build a cutting-edge factory in Chesterfield, Virginia. The factory will manufacture advanced, energy efficient Solid Oxide Electrolyzer Cells (SOEC) that are essential to the efficient production of clean hydrogen and derivatives like eAmmonia and eMethanol.

The decision by Topsoe to announce its plan for its largest investment in the US to date comes after the company received an allocation for nearly $136 million in federal Section 48C tax credits from the Inflation Reduction Act.

Subject to Final Investment Decision, this more than $400M 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 million tonnes 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[1]% 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 hydrogen per total power input.

Governor Glenn Youngkin said: 

“I am thrilled that Topsoe has chosen the great Commonwealth of Virginia for its new, state-of-the-art factory that will be key to scaling clean hydrogen production. Virginia’s robust workforce, strategic location, and top business climate provide the necessary tools for Topsoe to continue to grow as a leader in the clean energy industry.”   

US Senator Mark R. Warner said:
“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.”

US Senator Tim Kaine said:
“I’m thrilled that Topsoe will be setting up a state-of-the-art facility in Chesterfield County to help manufacture clean energy components. This wouldn’t have been possible without the investments we made in the Inflation Reduction Act, which I was proud to have helped pass in the Senate by one vote. I look forward to seeing how this project will boost economic growth, create jobs, and help us build a clean energy future.”

US Representative Jennifer McClellan said:
“This new Topsoe facility in Chesterfield County will create hundreds of new jobs and stimulate millions of dollars in economic activity right here in Virginia’s Fourth. I will continue fighting with Senators Warner and Kaine to supercharge our transition to a clean-energy future and bring federal investments to our Commonwealth.”

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

Kim Hedegaard, CEO at Power-to-X at Topsoe, said:
“We at Topsoe believe in a sustainable future created by science. With this new facility, we will help drive down the cost of clean hydrogen by employing our innovative SOEC technology which is up to 30% more efficient than competing technologies. Our factory will ensure the economic and environmental aspects of the hydrogen economy are felt in the decades to come.”