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Stargate Hydrogen opens electrolyzer factory amid industry hesitation

Stargate Hydrogen inaugurates its new factory with an exclusive event, attended by Kristen Michal, the Prime Minister of Estonia and Jorgo Chatzimarkakis, CEO of Hydrogen Europe. The facility, dedicated to the production of innovative alkaline electrolysis stacks and systems, positions Stargate Hydrogen as a major industrial player in the green H2 landscape.

This project has been co-funded by the Republic of Estonia through the revenue from the Emissions Trading Scheme, and in the first phase, the new factory can deliver 140 MW of alkaline electrolyzers annually, which can be expanded to 1GW+ with minor additional investments. With robust support from European investors and IPCEI status (Important Projects of Common European Interest), Stargate Hydrogen is now well positioned to bring down the cost of green H2 and help decarbonize critical sectors, including steel, fertilizers and chemicals. Deliveries from the new factory have already started to the existing customers of the company in the European, Middle Eastern, Turkish and Indian markets. 

“Stargate Hydrogen’s IPCEI project stands as an outstanding example of how professionally managed public support can catalyze meaningful industrial innovation. Facilities like this and the material innovation undertaken by Stargate are exactly what we need to build the H2 economy in Europe, and stay competitive, sustainable, and sovereign in the clean energy transition,” said Jorgo Chatzimarkakis, CEO of H2 Europe.

According to the CEO of Stargate Hydrogen, Marko Virkebau, the company is not opening an empty factory — instead, they have adopted a smart, future-oriented approach of gradually scaling up production with modularity at its core. Rather than burdening taxpayers and shareholders with the costs of an oversized and underutilized plant, Stargate Hydrogen has chosen a brownfield site with a flexible floor plan to ensure the best use of space and avoid large upfront investments. 

Marko Virkebau, CEO of Stargate Hydrogen, said, “There are currently several electrolyzer gigafactories out there that are standing idle and burning through incredible amounts of capital. We have chosen a different strategy, scaling up modularly to meet the growing demand as it rises and when our next-generation innovations are launched to the market. Currently, our production is fully booked until the end of 2025, and we see increasing demand from our existing customers in Europe and new customers from the Middle East and Asia.”

The event brought together prominent policymakers, industry pioneers, and international partners. Held in the company’s production hall, the event’s main stage was surrounded by products in ongoing assembly, for example the turn-key electrolyzer system destined for Fortum and several stacks ready for delivery.

In times when many companies are scaling down or even ending their operations, Stargate Hydrogen goes against the tide and is expanding its operations via a gradual and financially sustainable scale-up strategy.