Recent announcements from companies including Sunfire, Centrica and Ceres suggest the technology is progressing beyond standalone demonstration projects towards broader commercial deployment across hydrogen production and distributed power markets, as companies seek lower-carbon alternatives to fossil-fuel-based industrial energy and diesel generation.

Unlike batteries, solid oxide systems either produce hydrogen using electricity and steam, or generate electricity from fuels such as hydrogen and natural gas. Developers believe the high-temperature electrochemical systems could help reduce emissions in sectors that are difficult to decarbonise while improving efficiency in industrial processes and off-grid energy systems.

One of the clearest signs of industrial scale-up came from German electrolysis company Sunfire, which recently announced plans to build a solid oxide electrolysis test facility at chemical company BASF’s site in Schwarzheide, Germany.

Solid oxide electrolysers use electricity and high-temperature steam to produce hydrogen and are seen as potentially more efficient in industrial environments where heat is already available. The BASF facility will evaluate large-scale hydrogen production using steam and industrial waste heat generated on site.

Developers see particular potential for the technology in sectors such as chemicals, refining and heavy manufacturing, where hydrogen demand is expected to increase as companies pursue lower-carbon production processes.

At the same time, solid oxide fuel cell systems, which generate electricity from fuels such as hydrogen or natural gas, are increasingly being explored as alternatives to diesel generation for backup and off-grid electricity supply.

Centrica and Taiwanese electronics manufacturer Delta Electronics recently launched a scalable off-grid power solution aimed at applications including remote infrastructure and data centres. The companies said the modular system is designed to provide continuous low-emission power generation in locations where grid connections are either constrained or unavailable.

Interest in fuel cell systems has increased in recent years as operators seek more reliable and lower-emission power options for critical infrastructure, particularly as data centre electricity demand continues to rise.

Companies are also focusing on improving the economics and operational performance of hydrogen production systems. Schneider Electric and Microsoft recently demonstrated what they described as India’s first fully autonomous solid oxide electrolyser system, using AI-driven monitoring and optimisation tools to improve performance and reduce operating costs.

The system uses real-time analytics to monitor plant and equipment performance, with automated recommendations designed to improve efficiency, extend operating life and optimise hydrogen output. According to the companies, autonomous optimisation could reduce production costs by up to 10%.

The growing emphasis on scalability and operational flexibility was also reflected in the launch of Endura, a new solid oxide platform from UK-based fuel cell and electrolyser developer Ceres. The company said the system has been designed to support both power generation and hydrogen production applications, with a focus on scalability and integration into industrial energy systems.

In more negative news, Danish firm Topsoe has announced a review of its clean hydrogen strategy, which reportedly includes temporarily closing the Herning, Denmark, solid oxide electrolyser cell factory that it opened in October 2025 because of weak customer demand.