16-01-2025

Topsoe de-risks SOEC electrolysers for green hydrogen through insurance partnership with New Energy Risk

Topsoe, a global leader in carbon emission reduction technologies, has chosen NER, a provider of technology performance insurance, as the preferred insurance partner for Topsoe’s SOEC hydrogen electrolyser products.

The partnership follows NER’s completion of detailed technical due diligence of Topsoe’s SOEC electrolyser technology and enables Topsoe’s customers to deploy NER’s technology performance insurance on projects using SOEC technology – enhancing bankability and enabling a lower cost of capital. The completion of technical due diligence streamlines the offering of performance insurance to eligible projects, who can benefit from improved timelines and increased certainty of financing success.

Sundus Cordelia Ramli, CCO Power-to-X at Topsoe, said: “Our partnership with NER is an important milestone to accelerate the delivery of our customers’ green hydrogen projects and is a testament to the confidence in our technology. As the insurance provides performance coverage for commissioning, ramp-up and operations it’s a strong de-risking tool supporting customers and investors with increased bankability for projects that involve our SOEC electrolysers.”

Tom Dickson, CEO of New Energy Risk, added: “We see the promise in the hydrogen market and appreciate that Topsoe has put their trust and confidence in NER’s capabilities to deliver value and support customer adoption and financing of their electrolyser technology.”

The insurance product from NER is a performance coverage for commissioning, ramp-up and operations. This includes cover for technical issues leading to temporary or permanent performance drop where coverage is provided to support cash flow and/or project revenue.

Providing insurance coverage for electrolysis technologies such as Topsoe’s SOEC accelerates the delivery of green hydrogen. Momentum for green hydrogen projects is growing and production levels can potentially increase substantially by 2030 if all announced projects are realized. According to the International Energy Agency's (IEA) Global Hydrogen Review 2023,¹ the annual production of hydrogen may reach 38 million tonnes per year in 2030, with almost 75 percent coming from electrolysers running on renewable energy.

SOEC factory in Herning

Topsoe has made significant progress in the development of its SOEC technology having completed the construction of its first SOEC factory in Herning, Denmark. The factory has started production with a view to begin commercial supply in Q1 2025.

To improve overall cost curve for SOEC deployment, Topsoe is also collaborating with ABB and Fluor, as the parties in June 2024 entered into an alliance to use learnings taken from construction of the Herning factory to build its next factory more efficiently and through a standardised concept.

1 https://www.iea.org/reports/global-hydrogen-review-2023/executive summary