The funds will be used for the expansion of the company's manufacturing facility in Tallinn, Estonia. This will be developed in phases and will produce alkaline electrolyser electrodes, pressurised alkaline stacks, and electrolyser systems with an annual production capacity of 250 megawatts (MW), 150 MW, and 66 MW, respectively.
The project addresses one of the key barriers to wider green hydrogen adoption: the price of the green molecule. Stargate Hydrogen's innovations include proprietary stack design, and electrodes coated with a patented ceramic-based catalyst that replaces precious metals, reducing the reliance on imported critical raw materials while enabling highly efficient hydrogen production.
Over its first ten years of operation, the project is expected to avoid approximately 3 million tons of CO₂ equivalent emissions by supporting broader deployment of affordable green hydrogen across hard-to-abate industries, including chemicals, steel, and other energy-intensive sectors.
The grant, financed by revenues from the EU Emissions Trading System, is a major investment into the Estonian clean technology sector. The project is expected to create approximately 150 direct high-value jobs, while supporting hundreds of additional jobs across construction, logistics, maintenance, and the wider European supply chain. The new facility will also strengthen regional manufacturing capabilities for strategic clean technologies and improve the resilience of Europe's hydrogen value chain.
“This grant marks an important milestone for Stargate Hydrogen and demonstrates confidence in our technology and manufacturing strategy” said Marko Virkebau, Chief Executive Officer of Stargate Hydrogen. “With the help of the Innovation Fund, we truly step up our game. After the factory expansion is finalised, Stargate will become one of the largest electrolyser manufacturers in Europe. Such manufacturing capability is important in order for us to be able to deliver our products to large industrial electrolysis projects, such as projects delivering green ammonia, synthetic natural gas, as well as sustainable aviation fuel.”
Last year, Stargate Hydrogen closed a successful Series A financing round, which included Repsol, one of the major hydrogen producers in Europe, and SmartCap, an Estonian state-owned venture capital firm, among others. The company is trusted by clients including Fortum, Utilitas, ABB, and Rockfin, among many others across Europe, Turkey, and India.
The development of advanced alkaline electrolysis technology by Stargate has been acknowledged by the European Commission as an Important Project of Common European Interest (IPCEI). The company has recently deployed a turn-key electrolysis system to Fortum in Finland and has supplied electrolysis stacks to several countries in Europe and beyond.
The Innovation Fund-backed project supports the European Union's Hydrogen Strategy and aligns with key policy initiatives, including REPowerEU, the Net-Zero Industry Act, and the Clean Industrial Deal, which consider electrolysers as strategic clean technologies for Europe's industrial future.
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