Estonia-based Stargate Hydrogen has taken a contrarian path—quietly building a modular, market-driven manufacturing base that now places it among Europe’s most agile electrolyzer producers.
On June 6, 2025, Stargate inaugurated its new electrolyser factory in Tallinn, with Estonian Prime Minister Kristen Michal and Hydrogen Europe CEO Jorgo Chatzimarkakis in attendance. The facility is designed to deliver 140 MW of alkaline electrolysers per year, with scalable capacity exceeding 1 GW—all without falling into the trap of overbuilding that has plagued competitors.
Stargate’s approach is a direct response to the oversupply dynamics now defining the sector. According to recent data from BloombergNEF, leading electrolyser firms are operating with factory utilization rates as low as 3%, with many facilities either sitting idle or burning through investor capital. The mismatch between ambitious hydrogen production forecasts and actual offtake volumes has led to industry-wide belt-tightening.
This risk-managed production model, supported by IPCEI status and more than €50 million in committed funding, is already bearing fruit. The Tallinn facility has begun shipping orders to customers across Europe, the Middle East, Turkey, and India. Its current production capacity is fully booked through the end of 2025.
Stargate’s core technology differentiator lies in its novel ceramic catalysts and a proprietary stack design intended to boost system efficiency and reduce total cost of ownership. These innovations target hard-to-abate sectors—particularly steel, fertilisers, and chemicals—where green hydrogen uptake remains hindered by price volatility and infrastructure immaturity.
The factory’s brownfield location and modular layout further reinforce the company’s strategy to avoid capital inefficiency. Instead of a high-risk “build-it-and-they-will-come” model, Stargate is executing what Virkebau described as a “future-oriented approach,” where scale matches booked demand and next-generation product rollouts.
During the launch event, held directly within the company’s active assembly hall, attendees—including policy officials and industrial partners—observed stacks being prepared for delivery and complete turnkey systems under final testing, including one bound for Fortum.
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