Topsoe Terminates Supply Agreements with First Ammonia Over Missed Milestones
Supply and service agreements signed in 2024 between Topsoe and First Ammonia for 100 MW of SOEC electrolyzer modules for a green ammonia project in Texas have been terminated after First Ammonia failed to meet key contractual milestones.
| Sectors | Hydrogen Energy, Electrolysis |
|---|---|
| Themes | Investments & Transactions, Contracts |
| Companies | Topsoe, First Ammonia, Forestal |
| Countries | United States |
Topsoe announced on March 26, 2026 the automatic termination of its supply agreements with First Ammonia, after the American company failed to meet contractual requirements within the set deadlines. The two companies had been collaborating since 2022 on the development of a nascent clean hydrogen industry, a sector still structuring itself despite high global ambitions — India targets 5 million tonnes of green hydrogen per year by 2030. Despite multiple extensions granted at First Ammonia's request, a key project milestone was not reached within the allotted timeframe, triggering automatic termination under the contract terms.
A 100 MW SOEC Electrolyzer Supply Agreement Terminated
In 2024, Topsoe and First Ammonia signed supply and service agreements covering 100 megawatts (MW) of solid oxide electrolyzer cell (SOEC) modules to be installed in First Ammonia's green ammonia project at the Port of Victoria, Texas. SOEC technology enables high-temperature water electrolysis, a process that offers superior efficiencies compared to conventional methods. Beyond electrolysis-based projects, new avenues are opening for low-carbon hydrogen supply, as illustrated by the significant natural hydrogen reserves confirmed at 3,655 meters depth in Moselle. First Ammonia failed to meet the required conditions following multiple successive extensions.
Topsoe indicates it was unable to grant a further extension for First Ammonia to reach the project's contractual milestones. The termination occurred automatically, in accordance with the clauses of the agreements signed in 2024. This outcome marks a setback for a project intended to contribute to the growth of the green ammonia sector in the United States. The group provides no details on any financial compensation related to the termination.
Topsoe Maintains a 50 MW Offtake Agreement with Forestal
In parallel, Topsoe holds a 50 MW offtake agreement with Forestal and reaffirms its commitment to honoring its contractual obligations with this partner. Elena Scaltritti, CEO of Topsoe, stated that the collaboration with First Ammonia had allowed the company's SOEC technology to reach a level of maturity sufficient for industrial-scale commercialization. The termination of agreements with First Ammonia does not, according to the company, affect its commitments to other commercial partners.
Topsoe's SOEC technology relies on high-temperature electrolysis, a process that offers efficiency advantages over alkaline or proton exchange membrane (PEM) electrolysis. This solution is one of the Danish group's development pillars for the green hydrogen market, a sector where large-scale commercialization continues to face persistent challenges in financing and project development.
A Strategic Review on SOEC Commercialization Expected by End of Q2 2026
Topsoe announced the launch of a strategic review — titled "Strategic Roadmap Review" — to assess the path for industrial-scale commercialization of its SOEC technology in the context of the evolving clean hydrogen market. The findings of this exercise are expected by the end of the second quarter of 2026. The company provides no details on the scenarios under consideration or the geographic markets this review is likely to prioritize. The announcement comes at a time when the high-temperature electrolysis sector is still seeking to demonstrate its economic viability at scale.
