Estonian hydrogen technology company Stargate Hydrogen has secured €20.6M from the EU Innovation Fund to expand its Tallinn factory. The project will increase the company’s manufacturing capacity for alkaline electrolyser components, stacks and complete systems.
The factory expansion, reported by Tööstusuudised, will be developed in phases under an agreement with the European Climate, Infrastructure and Environment Executive Agency (CINEA). It targets large-scale industrial electrolysis and Power-to-X projects. Full grant details can be found here.
Scaling production in Tallinn
The new factory is planned to produce 250 MW of alkaline electrolyser electrodes, 150 MW of pressurised alkaline stacks and 66 MW of complete electrolyser systems each year. The expansion will support the company’s existing manufacturing operations in Tallinn and increase its ability to supply industrial projects using green hydrogen.
Stargate Hydrogen’s technology combines a proprietary stack design with electrodes coated in a patented ceramic-based catalyst that replaces precious metals. The approach is intended to reduce reliance on imported critical raw materials while supporting efficient hydrogen production.
The Tallinn site opened in 2025 with capacity to deliver 140 MW of systems per year. The company has also deployed a turnkey electrolysis system at Fortum’s test plant in Finland, where the system entered test production of green hydrogen.
Stargate Hydrogen’s recent Series A financing included Repsol and SmartCap. The company’s customers and partners include Fortum, Utilitas, ABB and Rockfin, and it has supplied electrolysis stacks to projects in Europe and beyond.
Supporting the local workforce
The project is expected to create approximately 150 direct jobs and support additional employment in construction, logistics, maintenance and the wider European supply chain. Over its first 10 years of operation, it is expected to avoid approximately 3 million tons of CO₂-equivalent emissions by supporting the wider use of green hydrogen in chemicals, steel and other energy-intensive industries.
Marko Virkebau, chief executive officer of Stargate Hydrogen, said the grant would help the company scale its manufacturing strategy. “After the factory expansion is finalised, Stargate will become one of the largest electrolyser manufacturers in Europe,” he said.
The grant is financed through revenues from the EU Emissions Trading System. The project supports the European Union’s Hydrogen Strategy and aligns with REPowerEU, the Net-Zero Industry Act and the Clean Industrial Deal.
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