Dear reader,
The global energy system is undergoing a profound transformation. Nations, industries and communities face a dual challenge. They must meet rising energy demand while rapidly reducing emissions. This shift is urgent, complex and already reshaping markets worldwide.
Energy security, affordability and sustainability must now be addressed together. Hard to abate sectors such as steel, chemicals, shipping and heavy industry are under increasing pressure to decarbonise. At the same time, electrification of transport, growth in data infrastructure and expansion of renewable energy are driving demand for flexible and efficient power solutions. Hydrogen and other green molecules are also emerging as critical enablers of a sovereign, low carbon economy.
In this complex, evolving environment, technologies must deliver impact today while enabling the transition to a zero-emission future.
Elcogen’s approach
At Elcogen, our purpose is to bridge the energy transition. We focus on technologies that are ready now and capable of improving efficiency, reducing emissions and integrating into evolving energy systems.
Our strategy is built on developing and manufacturing the core technology that powers our customers’ systems. Through what is essentially our ‘Elcogen inside’ model, we provide high performance solid oxide cells, stacks and modules which are integrated by our partners into a wide range of systems. This approach allows us to support many developers across different applications and grow alongside them.
Our platform is application agnostic and serves multiple high growth segments. In fuel cell mode, we support distributed power generation, data centres, EV charging infrastructure and residential and maritime applications. In electrolysis mode, we enable efficient hydrogen and syngas production for use in green ammonia, synthetic fuels and industrial processes.
By working closely with customers from early development through to commercial deployment, we embed our technology within their systems and build a strong foundation for future growth, together.
Technology and industrial strength
Our technology operates in two complementary modes. In fuel cell mode, it converts gas into electricity with high efficiency and low to zero emissions. In electrolysis mode, it produces hydrogen and syngas efficiently, supporting industrial decarbonisation. This dual capability positions Elcogen at the intersection of clean power generation and green molecule production.
A key advantage of our technology is that it does not rely on noble metals, unlike some alternative technologies, and is engineered for durability and cost-effective large-scale manufacturing. When deployed in electrolysers, our components use 30% less power than alkaline solutions, lowering renewable energy, land, and capital requirements while producing more hydrogen, helping to reduce investment barriers for green hydrogen.
In 2025, we reached a defining milestone with the completion of ELCO I, our advanced manufacturing facility. This transformed Elcogen from a pilot scale innovator into an industrial scale technology provider.
ELCO I increases our production capacity from 10 MW to up to 360 MW and introduces continuous automated manufacturing. It also serves as a blueprint for future expansion and aligns with our next generation product roadmap, including our Gen2 stack designed for mass production and broad adoption.
This combination of technology and industrial capability supports our cost reduction pathway. As renewable energy expands and input costs decline, we are lowering conversion costs and enabling competitive levelised costs of hydrogen and electricity in key applications.
Market momentum and positioning
The stationary fuel cell market is established and growing, providing immediate opportunities. The solid oxide electrolysis market is expected to accelerate from 2030 as industrial decarbonisation intensifies.
Our phased approach reflects this development. In the near term, we prioritise fuel cell applications while collaboratively preparing for the growth of electrolysis together with our customers and partners. This balanced strategy allows us to build commercial traction today while positioning for future demand.
Indeed, the year 2025 marked our transition into large scale production, although commissioning of our new facility temporarily affected output and short-term revenues. Despite this, we strengthened partnerships, expanded into new markets and secured important commercial agreements, including early adoption of our Gen2 stack.
Our pipeline remains strong. Development cycles in complex energy systems take time, but these relationships are expected to translate into significant growth as projects mature.
Our revenue mix in 2025 was:
54% Europe (2024: 51%)
39% Asia (2024: 47%)
7% Americas (2024: 2%)
Looking ahead
The foundations for our next phase of growth are firmly in place. Our immediate focus is on ramping up ELCO I, meeting customer expectations and delivering consistent quality at scale. We are also expanding our testing and development capabilities to accelerate innovation and reduce time to market. Our new ElcoLAB in Finland will open in 2026.
Looking further ahead, we are positioning the business to capture a meaningful share of the electrolysis market. As industries adopt hydrogen and synthetic fuels, demand for efficient and scalable technologies will continue to grow.
We expect to reach full production capacity by 2030 in line with market development. Continued product innovation will further enhance performance and cost competitiveness.
With strong technology, industrial capability and clear strategic focus, Elcogen is well positioned to play a significant role in the global energy transition.
Closing remarks
As a company, we are levelling up. We have moved beyond demonstration into industrialisation, strengthened our market position and established the foundation for long-term growth.
This progress reflects the trust of our investors, the commitment of our team and the collaboration of our partners and customers. As we move forward, we remain focused on delivering sustainable value both commercially and environmentally.
The energy transition presents both challenge and opportunity. At Elcogen, we are committed to being part of the solution.
Enn Õunpuu,
Founder and Chief Executive Officer