ThyssenKrupp Nuessela opens a pilot plant for solid oxide electrolyzers in Germany

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Thyssenkrupp Nucera opens a pilot plant for solid oxide electrolyzers in Germany. The electrolyzer manufacturer Thyssenkrupp Nucera and the ceramic materials research institute Fraunhofer IKTS announced on May 27, 2025, that they have established a pilot production facility for solid oxide electrolyzers in Arnsstadt, Germany. The factory producing hydrogen generation equipment will initially manufacture small batches, with a target production capacity of 8 MW per year. Partners say that this pilot plant will provide the necessary experience to support the development of a fully automated large-scale industrial solid oxide production plant, with plans to build one capable of producing 300 MW per year by the end of this decade. ThyssenKrupp Nucera will now work together with Fraunhofer IKTS to advance SOEC technology for the development of industrial-scale green hydrogen production stacks. Solid oxide electrolyzer stack technology uses an \"oxygen-conductive ceramic electrolyte substrate with two electrodes\", and ferrochrome interconnectors are assembled in several layers to form the stack. The FeCr-based SOEC technology features high corrosion resistance, optimized thermal cycle performance, and high long-term stability. Partners say that this battery design is highly suitable for automated production. Solid oxide electrolysis technology is generally more efficient at producing hydrogen than alkaline and proton exchange membrane electrolysis, but it requires higher operating temperatures and is a less mature technology. The required high temperature makes it highly suitable for industrial applications, and the remaining waste heat can be utilized in this process. Another advantage of solid oxide systems is that, if carbon dioxide and water are added, this technology can directly produce syngas. By integrating SOEC technology into industrial waste heat sources or directly producing syngas from water and carbon dioxide, companies can maximize the efficiency of green hydrogen production and effectively implement their decarbonization strategies. Both parties stated that, compared to other application technologies in industries such as the steel industry where there is a large amount of waste heat, this technology can reduce electricity consumption by 20%-30%. When the electrolyzer operates at a high temperature of around 800 degrees Celsius, the heat supplied can be used to generate steam at a temperature of about 100–130 degrees Celsius, thereby heating the electrolyzer. Electricity is the main factor driving the cost of green hydrogen, accounting for about 60%-70% of the total cost. Platts has estimated the cost of producing green hydrogen in Germany through alkaline electrolysis; with the support of renewable energy purchase agreements, the cost on May 23, 2025, was 7.14 euros per kilogram (8.09 dollars per kilogram), which is lower than the peak of 14.50 euros per kilogram seen in mid-December 2024. This assessment reflects one possible approach to producing green hydrogen that complies with the EU’s renewable energy directives. Despite recent adverse factors such as supply chain disruptions, inflation, policy delays, and geopolitical **concerns, the prospects for Europe’s green hydrogen market remain optimistic. In Europe, some positive trends are emerging, especially in Southern Europe and Northern Europe. The reason is simple: in these regions, the cost of generating electricity from renewable sources is more competitive. The company has an electrolyzer production capacity of over 1 GW and is the preferred technology provider in Europe. It is supplying alkaline electrolyzers for Saudi Arabia’s 2.2 GW Neom project and Sweden’s 700 MW Stegra plant. Nucera has completed the installation of electrolyzers for Shell’s 200 MW Dutch Hydrogen I plant in the Netherlands. Before the target commissioning at the end of 2025 or in 2026, the project is in the final stage of connecting to the factory’s infrastructure. However, Ponikwar said the outlook is different in the United States; under the Inflation Reduction Act, a bill to eliminate the 45V tax credit is being passed in the Senate, and it will provide subsidies of up to $3 per kilogram for the production of green hydrogen. It is believed that there will not be many projects in the United States continuing to move forward in the coming years. Other promising regions include Oman and Saudi Arabia in the Middle East, as well as India and China.