Hydrogen Production: Sunfire and BASF Launch SOEC Test Facility at Industriepark Lausitz

There aren’t many places that show the shift from traditional brown coal to cutting-edge green hydrogen quite like the Industriepark Lausitz in Schwarzheide. This site, which used to focus on synthetic fuels derived from lignite, is now a key player in Germany’s mission to ramp up green hydrogen production. Recently, Sunfire teamed up with BASF InfraService & Solutions Lausitz GmbH to set up a test lab dedicated to solid oxide electrolysis cell (SOEC) stacks. They’re gearing up to validate the long-term performance of high-temperature electrolyzers, all aimed at boosting hydrogen infrastructure and paving the way for those massive gigawatt-scale rollouts that are crucial for decarbonizing industries.

Germany’s National Hydrogen Strategy is a serious commitment, with over €9 billion in funding planned, aiming for a whopping 10 GW of domestic electrolysis capacity by 2030. And it doesn’t stop there—EU initiatives like IPCEI Hy2Infra and H2Giga are building on that ambition. By putting SOEC modules to the test at Schwarzheide, Sunfire is set to gather valuable data on efficiency, durability, and grid integration—insights that will directly influence large-scale contracts and negotiations down the line.

Partnership and Purpose

The new facility is set to kick off operations by the end of 2026, nestled within the chemical park that’s been overhauled by BASF since the early ’90s. Jürgen Fuchs, the managing director at BASF InfraService & Solutions Lausitz, views the lab as a perfect extension of the site’s hydrogen legacy. On the other hand, Christian von Olshausen, Sunfire’s CTO, highlights that the real magic happens when you test under industrial loads—it’s all about fine-tuning stack designs and control systems. While they haven’t disclosed capacity figures yet, this test stand is designed to replicate the thermal and electrical stresses that a full-scale plant might encounter, offering an unbeatable ‘real-world’ testing environment, unlike what you’d find in a lab.

Company Context

Sunfire, which kicked off in Dresden back in 2010, has quickly risen to become a frontrunner in high-temperature electrolysis technology, growing from small-scale modules to multi-megawatt stacks. They’ve recently delivered their stacks for a 30 MW industrial demo in Bad Lauchstädt and are launching a 50 MW alkaline system in April 2026. Their partnerships with Repsol and Enagás, along with funding from EU initiatives like GrInHy2.0 and H2Giga HTEL MODULE, have been key to their steady progress in technology improvements.

BASF InfraService & Solutions Lausitz GmbH has roots that dig back to the coal hydrogenation process started by BASF in 1927. Post-German reunification, the Schwarzheide site evolved into a chemical hub, currently employing over 900 people. Today, it supports a 108 MW combined-cycle power plant and has utility networks that are just perfect for high-temperature electrolysis trials.

Advanced SOEC Technology

The solid oxide electrolysis process runs at about 850°C, where it splits steam at the cathode, producing hydrogen and oxygen ions. These ions then traverse through a ceramic electrolyte—typically yttria-stabilized zirconia—and recombine at the anode, giving off pure oxygen. The high temperatures allow for efficiencies reaching up to 89% LHV (AC), although demos like GrInHy2.0 show around 84%. For the new lab in Schwarzheide, the SOEC’s ability to utilize process heat from a nearby power station or chemical units could significantly reduce its net electricity demand and drive down the levelized cost of hydrogen.

Business and Policy Angle

This exciting initiative is in line with EU decarbonization targets and Germany’s goal to phase out fossil fuel-based hydrogen in energy-heavy sectors like chemicals and steel. By tackling uncertainties around stack degradation and operational flexibility, this project could help lower the projected costs of hydrogen. It also plays into the competitive race among different electrolyzer technologies—SOEC, PEM, and alkaline—by providing the solid data that industrial buyers need for their investment decisions. Plus, with co-financing from the European Investment Bank and potential off-take agreements with BASF’s chemical units, there’s a promising route to commercialization here.

Regional Transformation

Schwarzheide, created in 1936 by merging Zschornegosda and Naundorf, used to be all about lignite mining and fuel synthesis. However, as lignite plants close and green industry takes center stage, Brandenburg’s economic landscape is shifting. For a town with around 6,100 residents, the arrival of the new SOEC lab doesn’t just promise validation of technology—it also opens up new job opportunities in operations, maintenance, and hydrogen logistics. This marks a significant shift towards a sustainable energy future in a region previously defined by coal.

Technical Insights

Beyond looking at efficiency, the tests at Schwarzheide will investigate how well the systems follow dynamic loads, their tolerance to thermal cycling, and how they integrate with renewable energy sources. SOEC systems need to handle frequent starts, stops, and partial loads when connected to wind or solar setups. Collecting data on stack lifetimes and sealing integrity under these conditions will help refine cost models over time. Researchers will also dive into co-electrolysis, mixing CO₂ with steam to generate syngas or e-fuels—an appealing option for BASF’s downstream operations.

Environmental Impact

Switching from fossil-based to green hydrogen could dramatically slash carbon emissions—think tens of thousands of tons each year at just one chemical plant. At Schwarzheide, renewable hydrogen could replace up to 25% of the park’s current hydrogen needs, leading to notable lifetime CO2 savings. Additionally, coupling SOEC with co-electrolysis can pave the way for producing e-fuels and syngas from captured CO₂, creating a closed carbon loop for fuels and chemical inputs. This is right in line with broader EU sustainability objectives.

Industry Context

It’s worth noting that industrial green hydrogen, despite the electrolysis discovery over two centuries ago, has only recently gained significant momentum. Industry reports suggest that electrolyzer costs have plummeted by over 60% since 2015. Looking ahead to 2030, Europe’s targets aim for more than 500 GW of capacity, driven by initiatives like IPCEI. The Schwarzheide project is one of the few planned SOEC validation sites worldwide, but what sets it apart is its integration within a working chemical park—unlike anything else, which provides a unique lens to view the synergy between hydrogen production and existing industrial operations.

Looking Ahead

Once the lab gets up and running, it will offer invaluable insights for grid operators, equipment manufacturers, and chemical buyers on how high-temperature electrolyzers perform during daily operations. If everything goes according to plan and meets efficiency and durability standards, Sunfire may be poised to tackle gigawatt-scale plants supported by IPCEI Hy2Infra funding. For Schwarzheide, this is a pivotal moment in its transformation from coal hydrogenation to a beacon of clean hydrogen news and a sustainable industry. The bigger takeaway here is clear: existing industrial parks can morph into low-carbon hubs, provided there’s the right technological and policy support.

By merging innovative SOEC technology with a site rich in chemical history, this initiative could serve as a model for other older industrial areas that are facing the need to decarbonize. It’s a powerful reminder that hydrogen energy news isn’t just about building new facilities; it’s also about breathing new life into the old.