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, which can benefit from improved timelines and increased certainty of financing success.
“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” said Sundus Cordelia Ramli, CCO Power-to-X at Topsoe. “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.”
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 achieved. According to the International Energy Agency's (IEA) Global Hydrogen Review 2023, 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.
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.
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