© Stargate Hydrogen

Stargate Hydrogen has inaugurated a new alkaline electrolyzer factory in Tallinn, Estonia, with an initial annual production capacity of 140MW. The EU-backed facility is designed for modular expansion and can grow to over 1GW with minor additional investments.

Modular Strategy to Match Market Demand

Unlike many competitors investing in large-scale gigafactories, Stargate chose a modular approach. CEO Marko Virkebau explained, “There are currently several electrolyser gigafactories out there that are standing idle and burning through incredible amounts of capital. We have chosen a different strategy, scaling up modularly to meet the growing demand as it rises and when our next-generation innovations are launched to the market.”

Production Fully Booked Until 2025

The factory’s full production capacity is already sold out through the end of 2025. Stargate plans to supply turnkey electrolyser systems to customers in Europe, the Middle East, Türkiye, and India. Existing customers include Fortum in Finland and BGR Tech in India.

Funding and Site Choice

The new factory was built on a brownfield site to reduce upfront investment and allow a flexible floor plan. Stargate secured €42 million ($47.8 million) in grants through the EU’s Important Projects of Common European Interest (IPCEI) program, alongside equity from UG Investments and a recent €11 million Series A funding round to support scaling.

Innovative Electrolyser Technology

Stargate uses ceramic-based catalysts rather than precious metals. This technology aims to lower energy consumption and production costs. The factory’s opening on June 6 was attended by Estonia’s Prime Minister Kristen Michal and Jorgo Chatzimarkakis, CEO of Hydrogen Europe.

Chatzimarkakis said, “Facilities like this and the material innovation undertaken by Stargate are exactly what we need to build the hydrogen economy in Europe, and stay competitive, sustainable, and sovereign in the clean energy transition.”

Outlook for the Hydrogen Market

Stargate’s modular and scalable factory approach contrasts with many large gigafactories that face financial strain due to low utilization. By scaling production in stages aligned with actual demand and innovation rollouts, Stargate aims to remain flexible and efficient.