Croatian electrical equipment manufacturer Končar has been selected to enter grant-agreement preparation for up to €39.3 million in European Union Innovation Fund support for its Končar Nexus project, which aims to industrialise power-conversion technology for green hydrogen production and other energy-intensive industrial applications.
The project centres on the Končar Smart Power Interface (KSPI), a modular 2.5 megawatt (MW) platform designed to convert electricity from the medium-voltage grid into direct current (DC). The technology is intended primarily for electrolysers used to produce renewable hydrogen, where efficient and reliable power conversion is a critical part of the system.
According to Končar’s 20 October announcement, its selection is part of an EU Innovation Fund funding round in which 77 projects from 23 European countries were selected, with total funding of approximately €3.4 billion. The proposed grant for Končar Nexus is €39.3 million, but the final amount and project obligations will be established through the grant-agreement process.
Končar Nexus Targets Power Conversion for Electrolysers
Electrolysers use electricity to split water into hydrogen and oxygen. Connecting industrial-scale systems to the electricity grid requires power-conversion equipment that can deliver electricity at the voltage and current characteristics needed by the electrolyser.
Končar says its KSPI platform is designed to integrate functions that are commonly handled by multiple separate components. Bringing these functions together in a compact system is intended to reduce energy losses, simplify installation and improve operational flexibility.
The technology is also relevant to industrial processes beyond hydrogen production where equipment requires DC power. Its commercial prospects will depend on technical validation, system performance, manufacturing costs and demand from prospective industrial customers.
Zagreb-Area Sites Planned for Engineering and Manufacturing
The project is planned across two sites in the Zagreb area.
At the Fallerovo site, Končar plans to develop engineering and validation capabilities, including a validation laboratory, engineering offices and a new 110 kilovolt (kV) substation. The infrastructure would support full-scale testing and industrial qualification of the power-conversion system.
At Sesvetski Kraljevec, the company plans to establish a greenfield production facility for serial assembly, testing and dispatch of Končar Smart Power Module (KSPM) units. The planned facility is designed for maximum production capacity of up to 200 units annually.
The standardised KSPM is described as a 2.5 MW modular platform based on solid-state transformer technology. It is designed to integrate medium-voltage interfacing, protection, power conversion, galvanic isolation, auxiliary power supply, liquid cooling, and digital monitoring and control in a containerised unit.
The manufacturing capacity is a design target for the planned facility, not evidence that production has begun or that the full output has been sold.
Project Investment and Timeline
Končar estimates the project’s planned capital expenditure at up to €70.7 million, with the proposed Innovation Fund contribution of €39.3 million covering part of the investment. The company is targeting financial closing by 31 March 2029, with the system scheduled to enter operation on 1 January 2031.
Both dates remain project targets and are subject to financing, grant-agreement preparations and implementation. The proposed EU support should not be treated as funding already disbursed.
The project is intended to address a power-infrastructure challenge for industrial decarbonisation. As hydrogen production scales up, electrolyser developers and operators will need electrical systems capable of handling large loads efficiently and reliably. Integrated conversion platforms may help simplify system design, although actual energy savings and operating benefits will need to be demonstrated under real-world conditions.
Bioenergy Business Analysis
Končar Nexus highlights an important part of the green hydrogen supply chain that receives less attention than electrolyser capacity itself: the electrical equipment needed to connect industrial hydrogen production to the grid.
A dedicated medium-voltage-to-DC platform could help standardise power infrastructure, potentially reducing the complexity of installing and integrating large electrolysers. However, the scale of the opportunity will depend on how the technology performs against alternative power-conversion architectures and whether developers see measurable benefits in efficiency, installation time, reliability and lifecycle cost.
The proposed manufacturing capacity of up to 200 units a year would provide Končar with a platform for serial production if the facility is built and demand develops. The next milestones to watch are completion of the grant agreement, confirmation of the final investment and financing structure, construction of the planned facilities, and independent performance validation.
The €39.3 million selection is therefore an important step towards commercialisation, but not yet a completed grant award or proof of commercial deployment. For the wider hydrogen sector, the project’s value will ultimately be measured by whether it delivers reliable, competitive power systems that help reduce the cost and complexity of producing renewable hydrogen.
