Estonia's Stargate Hydrogen lands €21 million EU grant to scale electrolyser factory
What's the deal? Stargate Hydrogen has signed a €21 million grant agreement with the European Climate, Infrastructure and Environment Executive Agency (CINEA) under the EU Innovation FundDealroom has a profile for this one. Try Dealroom →. The money will expand the company's electrolyser manufacturing facility in Tallinn, Estonia.
What's the endgame? The expansion runs in phases and will produce alkaline electrolyser electrodes, pressurised alkaline stacks, and full electrolyser systems, with annual capacities of 250MW, 150MW, and 66MW, respectively. Chief executive officer Marko Virkebau said the plant will make Stargate "one of the largest electrolyser manufacturers in Europe."
How it works: The company's electrodes use a patented ceramic-based catalyst that replaces precious metals, cutting reliance on imported critical raw materials. Stargate targets a core barrier to green hydrogen adoption — cost.
Why it matters: The grant, financed by EU Emissions Trading System revenues, is expected to create roughly 150 direct jobs and support hundreds more across construction, logistics, and the wider supply chain. Over its first decade, the project is projected to avoid around 3 million tons of CO₂-equivalent emissions by supplying hard-to-abate sectors such as chemicals and steel.
By the numbers: Among grant rounds for hardware startups in Estonia, this is the largest on record — ranking in the top 1% of 67 comparable deals.
The backstory: Last year, Stargate closed a Series A that included RepsolDealroom has a profile for this one. Try Dealroom →, a major European hydrogen producer, and Estonian state-owned venture firm SmartCapDealroom has a profile for this one. Try Dealroom →. Its clients include FortumDealroom has a profile for this one. Try Dealroom →, UtilitasDealroom has a profile for this one. Try Dealroom →, ABB, and RockfinDealroom has a profile for this one. Try Dealroom → across Europe, Turkey, and India, and the European Commission has recognised its alkaline electrolysis technology as an Important Project of Common European Interest.
The signal: The award ties directly to EU policy — REPowerEU, the Net-Zero Industry Act, and the Clean Industrial Deal — that treats electrolysers as strategic clean technologies. It reflects a European push to build domestic hydrogen manufacturing and reduce dependence on imported critical materials.
Read more: renewableenergymagazine.com
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