Estonian alkaline electrolyzer manufacturer Stargate Hydrogen Solutions OÜ has secured a significant strategic partnership with Spanish energy giant Repsol S.A. Through Repsol’s Corporate Venture arm, a minority stake has been acquired in Stargate Hydrogen’s share capital, reinforcing Stargate’s standing as an international leader in renewable hydrogen technology. This alliance not only supports Stargate’s ongoing momentum following an 11 million euro Series A funding round earlier this year and the inauguration of a new factory but also promises to expand manufacturing capacity, accelerate research and development, and amplify commercial operations across Europe, the Middle East, and Asia.
Marko Virkebau, CEO of Stargate Hydrogen, expressed enthusiasm about the collaboration, highlighting that Repsol’s status as Spain’s largest hydrogen producer and consumer provides valuable first-hand experience with the complexities inherent in hydrogen projects. “We are delighted that this partnership will allow us to work together on multiple fronts, from R&D and product development to commercial deployment of Stargate’s innovative electrolyzer technology,” he said. Gema García, Director of Open Innovation and Corporate Venturing at Repsol, framed renewable hydrogen as central to Repsol’s decarbonisation strategy and noted that their close monitoring of Stargate’s progress gave them confidence in the potential of this partnership to accelerate renewable hydrogen advancements.
Stargate’s patented electrolyzer technology employs advanced ceramic catalyst materials and a novel stack design, which distinguishes it from competitors largely reliant on precious metals. This innovative approach not only lowers energy consumption but also reduces capital expenditures, enabling more affordable and scalable green hydrogen production. The company’s annual manufacturing capacity currently sits at 140 megawatts (MW), with potential to upscale beyond 1 gigawatt (GW) through relatively modest additional investments. This capacity growth aligns with Europe’s broader ambitions to accelerate the decarbonisation of heavy industries and enhance energy independence by developing critical green energy technologies.
The Series A funding round, which included strategic customers and investors such as Giga, UG Investments, and the SmartCap Green Fund—a state-backed venture capital entity focused on green technology—has already supported enhancements in manufacturing and internal testing capabilities, as well as the establishment of strategic partnerships. The technology’s credibility is underscored by validation from renowned institutions like the Zentrum für Sonnenenergie- und Wasserstoff-Forschung Baden-Württemberg (ZSW) in Stuttgart and recognition as an Important Project of Common European Interest by the European Commission. Furthermore, Stargate was selected by Finnish utility Fortum to supply alkaline electrolysis technology for a green hydrogen plant in Loviisa, demonstrating growing market traction.
For Repsol, this minority stake represents a tangible step within a broader, sometimes challenging, journey toward scaling renewable hydrogen. While the company announced a major €2.549 billion investment plan to boost renewable hydrogen production back in 2021, including demonstration projects and hydrogen refuelling infrastructure by 2025, recent years have seen regulatory uncertainties and economic challenges delay or pause several green hydrogen projects in Spain. An unfavorable regulatory environment, particularly revolving around Spain’s windfall tax on large energy companies, had compelled Repsol to freeze some significant green hydrogen developments, such as those in Cartagena, Tarragona, and the Basque Country. With the recent parliamentary decision to end this tax, which had threatened nearly €30 billion in renewable energy investments, Repsol has resumed focus on green hydrogen and related sustainable fuel initiatives, including a multi-hundred-million euro green methanol plant in Tarragona supported by EU Innovation Fund.
Despite these renewed efforts, Repsol has recently revised its green hydrogen capacity targets downward, now aiming for between 0.7 and 1.2 GW of electrolyser capacity by 2030—down from the previous 1.9 GW—citing high costs, dependency on subsidies, and regulatory delays. CEO Josu Jon Imaz has emphasised a pragmatic approach prioritising capital discipline and returns over ambitious capacity goals. This context makes the collaboration with Stargate Hydrogen particularly relevant, as Stargate’s cost-effective and scalable technology could help mitigate some economic challenges inherent in green hydrogen production, meeting both Repsol’s strategic needs and Europe’s decarbonisation goals.
The alliance between Stargate Hydrogen and Repsol embodies a shared ambition to dramatically reduce the costs of renewable hydrogen production, enabling faster adoption in heavy industries and contributing to Europe’s energy sovereignty. As the continent accelerates its energy transition, partnerships like this highlight the critical role of innovative electrolyser technologies and committed industry stakeholders in overcoming technical, economic, and regulatory hurdles to a green hydrogen future.
Source: Noah Wire Services
