Dynelectro raises €11 million to scale a 1 MW solid oxide electrolyser as hydrogen push heats up
- ›Dynelectro closed an €11 million equity round to build and deploy a 1 MW Dynamic Electrolyser Unit based on solid oxide electrolysis.
- ›The company says its AC:DC operating mode extends SOE stack life from about 2 years to roughly 10 years and can reach electrical efficiencies up to 90 percent with heat integration.
- ›Dynelectro combines €11 million in investment with about €9 million in grants and partnerships, and plans a first 1 MW installation at a European Energy site in Denmark in H1 2025.
- ›Investors include EIFO, Yara Growth Ventures, Vsquared Ventures, PSV Deeptech, The Footprint Firm and the EIC Fund, with reported involvement from the EIB and collaborations that include Shell.
- ›Claims about lifetime, degradation rates, cost reductions and dynamic grid services are promising but rest on company tests and will need independent field validation at commercial scale.
Investment and commercialisation push
Dynelectro, a Danish company founded in 2018, announced the successful closing of an €11 million investment round on 11 July 2024. The funds will be used to scale its Dynamic Electrolyser Unit, or DEU, from 150 kW prototypes to modular 1 MW commercial units. The round is led by a group of early stage and specialised investors including the Export & Import Fund of Denmark, Yara Growth Ventures, Vsquared Ventures, PSV Deeptech, The Footprint Firm and the European Innovation Council Fund. The company also reports roughly €9 million in grants and collaborative funding coming from sources that include the EIC and the Danish Energy Technology Development and Demonstration Program, with commercial collaborations that mention Shell. Reports also note participation that moves the company's investor profile toward industrial and institutional investors, with the European Investment Bank referenced as involved in the round.
What Dynelectro says its technology delivers
Dynelectro builds solid oxide electrolysis systems engineered for industrial hydrogen production. The company claims its SOE modules achieve much higher electrical conversion efficiency than typical low temperature electrolysers, long stack life through a patented AC:DC dynamic operating mode, and rapid dynamic response to variable renewable power. Those features are framed as enabling lower carbon hydrogen for heavy industry, synthetic fuels and distributed industrial uses.
Technical claims and published specifications
Dynelectro publishes detailed specifications for its 1 MW DEU. Key numbers the company highlights are high system electrical efficiency when heat integration is used, low degradation rates measured in testing, modular footprint and dynamic load following capability. These specifications will be important to corroborate during real world operation at commercial sites.
| Specification | Dynelectro claim / published figure | Notes and caveats |
| System electrical efficiency (with heat integration) | Approximately 90 percent (electrical) | This figure depends on available waste heat and integration design. Independent verification at scale is needed. |
| System electrical efficiency (without heat integration) | Greater than 70 percent (electrical) | Still higher than typical low temperature electrolysers if confirmed. |
| Hydrogen production rate | Up to 27 kg/h or 321 Nm3/h per 1 MW module | Module output suitable for small industrial applications or larger modular arrays. |
| Power consumption (system) | 37.8 to 40 kWh/kg H2 (3.4 to 3.6 kWh/Nm3 H2) | Company lists stack and system numbers. Matching to real site conditions will affect these values. |
| Stack degradation | Less than 0.2 percent per 1,000 hours (equivalent to about 10 years lifetime) | Tested for 25,000 hours at ultra-low degradation rates according to company material. Independent long duration field tests are the gold standard. |
| Dynamic operation | 5 to 100 percent load, 5-100% response in under 30 seconds | Rapid ramping supports variable renewables and potential ancillary grid services claims. |
| Hot start-up time | Less than 10 minutes | If true this is faster than many high temperature technologies and helps integration. |
| Footprint | Approx. 9 by 21 metres for 1 MW module | Physical footprint will matter for siting at industrial sites. |
| Hydrogen purity | Greater than 99.99 percent (dry) | Sufficient for many industrial and synthesis applications. |
Claims about cost and market impact
Dynelectro positions the DEU as delivering a roughly 20 percent reduction in Levelized Cost of Hydrogen relative to competing Power-to-X technologies and reports 50 percent higher hydrogen output per unit of power than alkaline or PEM electrolysers. The company also emphasises the ability to provide fast production adjustments and ancillary grid services which could add revenue streams and improve overall system economics. These are important commercial propositions but they are based on company modelling and internal testing. Independent, site level demonstrations and third party assessments will be necessary to confirm the scale of cost reductions and the ability to monetise grid services.
Deployment timeline and pilot project
Dynelectro says the first full 1 MW unit will be installed at European Energy’s renewable energy facility in Denmark in the first half of 2025. The company intends to scale modular installations to multi megawatt configurations. Moving from a prototype to a grid-connected commercial installation within this timescale is ambitious. The pilot will be a key test for claimed lifetime, degradation rates, dynamic response, and heat integration performance under real operating conditions.
Funding, partners and endorsements
The equity round totals €11 million. Dynelectro also reports about €9 million in grants and collaborative funding from sources that include the European Innovation Council and Danish EUDP, plus regional programmes. Commercial partners mentioned include Shell and industrial investor Yara which operates the largest global ammonia network and is active in green fertiliser initiatives. Statements from investors and industry advisors are positive. Christian Winther of EIFO framed the company as strengthening Europe’s Power-to-X leadership. Ramboll’s PTX advisor, Eva Nielsen, highlighted Dynelectro’s patents and potential. The European Innovation Council gave a technical evaluation expressing that the technology may significantly transform and accelerate a major new market and that it contributes to the EU Green Deal. The presence of EIC and reported European Investment Bank involvement signals institutional interest in de-risking scaleup of deep tech hydrogen solutions.
Context within EU policy and the hydrogen market
Hydrogen is central to EU decarbonisation strategies for hard to abate sectors such as chemicals, steel, heavy transport and aviation fuels. The Green Deal, REPowerEU and related industrial strategies aim to scale electrolyser capacity across the bloc. The EIC Accelerator and Challenge calls target breakthrough technologies and can provide blended funding and investor matchmaking to bridge the valley of death for deep tech. However, achieving the multi-GW electrolyser capacity the EU targets will require rapid scaling, robust supply chains for critical components and materials, and significant grid and permitting reforms.
Risks, open questions and what to watch
Dynelectro’s claims are technically plausible and would address key SOE limitations if they hold up in commercial operation. Yet there are several points that need scrutiny. First, long term stack lifetime and low degradation rates are central to cost claims and must be validated under real load cycles, impurity levels and maintenance regimes. Second, high electrical efficiency numbers rely on effective heat integration which is site dependent. Third, scaling manufacture of ceramic SOE stacks at industrial volumes can encounter supply chain bottlenecks and quality control challenges. Fourth, economic competitiveness will depend on capex, availability of low cost renewable electricity and the ability to access revenue from ancillary services or product markets such as ammonia and e-fuels. Finally, the company will need to demonstrate operations across seasons and across multiple industrial partners to build a convincing commercial reference base.
Why this matters
If SOE can be made durable and cost competitive at scale it could improve electrolyser efficiency, open closer coupling with industrial waste heat, and reduce the electricity bill component of green hydrogen. That would make decarbonisation pathways more affordable for heavy industry and fuel synthesis. The EIC, EIB and industrial investors engaging with companies like Dynelectro reflect a strategic push in Europe to fund technologies that can deliver both climate impact and industrial competitiveness. Still, the step from promising prototypes and controlled tests to widely deployed commercial systems is large. The 2025 pilot in Denmark will be an important early indicator of whether the company can substantiate its claims.
Key dates and next milestones
| Milestone | Date / target | Notes |
| Equity round closed | July 2024 | Reported €11 million |
| Grant and collaborative funding secured | 2024 | Approximately €9 million from EIC, EUDP and other programmes |
| First 1 MW installation at European Energy site | First half 2025 | Critical pilot to validate performance claims |
| Public demonstrations and further scaleup | 2025 onwards | Dependent on pilot results and additional financing |
Contact and provenance. The core information in this article derives from Dynelectro press materials, product specifications on the company website, investor statements and public EIC commentary. Company performance and cost figures are supplied by Dynelectro and partner evaluations. Independent verification will be necessary to confirm commercial performance at scale.