Estonia received a state aid permit from the European Commission to support Skeleton Technologies hydrogen technology development projects with 18 million euros. The company’s investment in the Estonian development center is a total of 33.7 million euros.

“The knowledge-based economy and the development of new technologies are the future direction of the Estonian economy. It creates new knowledge, high value-added production and well-paid jobs. Skeleton’s investment to develop new hydrogen technology in Estonia will hopefully give impetus to further investments and the formation of a new type of business ecosystem in the field,” said Tiit Riisalo, Minister of Economy and Information Technology.

The grant will be used for hydrogen-specific research and development and the development of a module production unit in the transport sector. In the state budget, the funds from the sale of CO2 quota are planned for this purpose. Skeleton uses support for a development center in Estonia, the company’s total investment in hydrogen development is 33.7 million euros. The support is provided within the framework of the pan-European hydrogen program Hy2Move, in which, in addition to Skeleton, industrial giants such as Airbus, BMW and Michelin participate.

While Skeleton also operates in Germany, Finland, and France, its headquarter in Estonia plays a key role in the company’s R&D activities. “Skeleton has expanded to Europe, but we are and will remain an Estonian company. Estonia’s decision to join the hydrogen pan-European project provided competitive conditions for expanding our headquarters’ activities. We are participating in a hydrogen project with many of the world’s top companies, including BMW, Airbus, and Michelin. If Europe wants to compete with the US and China, then pan-European cooperation is necessary,” said Taavi Madiberk, CEO and co-founder of Skeleton Technologies.

“We are participating in a hydrogen project with many of the world’s top companies, including BMW, Airbus, and Michelin. If Europe wants to compete with the US and China, then pan-European cooperation is necessary.”
Taavi Madiberk, CEO and co-founder of Skeleton Technologies

“Estonian software and engineering talent, paired with the burgeoning hydrogen ecosystem, offers a great growth opportunity for us. We will build on our development and testing center and software units in Tallinn, which already employ world-class electrical, mechanical, hardware, and IT engineers,” added Taavi Madiberk. Over the next six years, the company aims to employ over 200 people in Estonia, creating high-value jobs that will significantly impact the entire Skeleton Group and its activities globally.

The state-aided project seeks to reduce the total cost of ownership of hydrogen vehicles and encourage their uptake. Skeleton will develop a pioneering high-power energy storage module that covers the functional shortcomings of a fuel cell (H2FC), extends its lifespan, and increases efficiency. Skeleton’s innovative SuperBattery technology meets the energy and power density requirements of hydrogen fuel cells, enabling the development of a more efficient energy storage solution for hydrogen vehicles. Implementing this technology will also reduce the need for critical raw materials and alleviate the supply chain dependence on materials outside the European Union.

“Skeleton’s planned development center is a good example of an innovative clean industry, for which we are creating room for growth with the Climate Safe Economy Act. The Skeleton solution contributes to the reduction of greenhouse gas emissions in the transport sector and provides exciting new opportunities for our smart engineers. Supporting such plans with CO2 funds is a smart use of money,” said Climate Minister Kristen Michal.

The notification to the European Commission for state aid for the implementation of hydrogen technologies in transport was already submitted in 2021. In the past, two Estonian companies involved in the development of hydrogen technologies have received support from the IPCEI (Important Projects of Common European Interest) hydrogen program: Stargate and Elcogen. In total, European countries support the development of hydrogen transport with 1.4 billion euros.

GOOD TO KNOW

The Hy2Move IPCEI program contributes to the European Union’s goal of reducing emissions from the mobility and transport sector by 90% so that the European Union becomes climate neutral by 2050. By promoting the use of hydrogen as a fuel, it also helps to achieve the goals of the European Union.

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