Topsoe Scales Back SOEC Expansion Amid Weak Hydrogen Market
Topsoe has revised its commercialisation strategy for solid oxide electrolyser cell (SOEC) technology, citing slower-than-expected growth in global clean hydrogen markets and broader economic uncertainty.
The Danish company announced that it would focus future SOEC development on strategic partnerships, demonstration projects and validating manufacturing capabilities at its facility in Herning, Denmark, rather than pursuing rapid industrial expansion.
As part of the revised strategy, Topsoe confirmed it would not proceed with previously announced plans to build a second SOEC manufacturing plant in the United States. Once commercial-scale production capabilities have been demonstrated at the Herning factory, the site will be placed into hibernation until market demand strengthens.
The move follows a strategic roadmap review launched in March 2026 to reassess the outlook for industrial-scale deployment of hydrogen electrolysis technology amid weakening investment momentum in several key clean hydrogen markets.
Topsoe said the changes would result in a leaner Power-to-X business structure and trigger a broader organisational restructuring affecting around 440 positions globally. The majority of the impact is expected to fall on the company’s Power-to-X operations and support functions in Denmark.
The restructuring programme is expected to generate annual cost savings of between DKK 450 million and DKK 550 million once fully implemented. However, the company also anticipates one-off restructuring and impairment charges of between DKK 3.5 billion and DKK 3.9 billion, most of which are expected to be recorded in the first half of 2026.
Despite the restructuring, Topsoe maintained its full-year revenue guidance of DKK 7.6 billion to DKK 8.4 billion, while improving its EBIT margin guidance before special items to between 4% and 9%, compared with its previous forecast of 0% to 5%.
Elena Scaltritti said the company had been forced to respond to a slower-than-anticipated market development for clean hydrogen technologies.
She said global market uncertainty and reduced momentum across targeted hydrogen sectors required the company to take “tough but necessary” measures to remain profitable and competitive.
Scaltritti added that Topsoe remained committed to advancing SOEC technology and supporting the long-term development of e-fuels, which the company believes will play an important role in future low-carbon energy systems.
SOEC technology is regarded as one of the more energy-efficient forms of hydrogen electrolysis, with Topsoe claiming its systems can produce up to 30% more hydrogen from the same amount of renewable electricity compared with conventional technologies.
Topsoe’s decision underlines the growing gap between political ambition for hydrogen economies and the slower commercial reality facing the sector. While SOEC technology continues to attract interest due to its efficiency advantages, weak project economics, delayed infrastructure development and uncertain policy support are forcing companies to adopt more cautious investment strategies. The restructuring also signals that even established hydrogen technology players are prioritising financial resilience over aggressive expansion as the clean hydrogen market enters a more challenging phase.
