Clean tech firm Stargate Hydrogen has signed a €20.6 million grant agreement with the European Climate, Infrastructure and Environment Executive Agency (CINEA) to expand its electrolyzer manufacturing operations in Tallinn, marking a major boost for European green hydrogen equipment production.
Funded by revenues from the EU Emissions Trading System, the grant will support the phased development of a new factory designed to produce alkaline electrolyzer components at scale. At full capacity, the facility will manufacture 250 MW of electrodes, 150 MW of pressurized alkaline stacks, and 66 MW of complete electrolyzer systems annually.
The project directly targets one of the central hurdles facing green hydrogen: high production costs. Stargate’s technology uses proprietary stack designs paired with electrodes coated in a patented ceramic-based catalyst. By replacing expensive precious metals, the technology reduces dependence on imported critical raw materials while maintaining high efficiency.
Scaling Supply for Hard-to-Abate Sectors
Over its first decade of operation, the expanded factory is projected to avoid roughly 3 million tons of $\text{CO}_2$ equivalent emissions by supplying affordable green hydrogen hardware to energy-intensive industries such as steel, chemicals, green ammonia, and sustainable aviation fuels.
“This EU Innovation Fund Grant marks an important milestone for Stargate Hydrogen and demonstrates confidence in our technology and manufacturing strategy,” said Marko Virkebau, CEO of Stargate Hydrogen. “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.”
Strengthening European Industrial Resilience
The investment is set to create approximately 150 direct high-value jobs in Estonia while supporting hundreds of additional roles across supply chains, construction, and logistics.
Supported by previous Series A investors—including Repsol and Estonian state-backed SmartCap—Stargate’s technology holds IPCEI status (Important Project of Common European Interest) from the European Commission. The company has already delivered turnkey systems to energy partners like Fortum in Finland and supplies electrolyzer hardware across Europe, Turkey, and India.
The project aligns with the EU’s broader REPowerEU and Net-Zero Industry Act initiatives, which treat domestic electrolyzer manufacturing as a strategic priority for Europe’s industrial transition.