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Hydrogen

Nel’s Michigan Electrolyser Factory Gets Boost

Anela DoksoBy Anela Dokso13/01/20252 Mins Read
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Nel, a Norwegian company, has secured an additional $29 million in investment tax credits for its planned electrolyser gigafactory in Michigan, bringing its total funding to approximately $200 million.

This additional funding comes from the Qualifying Advanced Energy Project Tax Credit, backed by the Inflation Reduction Act and administered by the US Department of Energy, Department of Treasury, and the Internal Revenue Service. Despite the financial boost, Nel has not yet made a final investment decision for the $400 million project.

The 4GW factory, announced in 2023, is expected to produce both alkaline and PEM electrolyser technologies, positioning it as one of the world’s largest manufacturing facilities of its kind. Nel states that further development of the site will depend on market demand.

With Donald Trump set to assume the presidency shortly, there are concerns about potential policy changes that could affect momentum in clean energy. There is uncertainty about whether the existing Inflation Reduction Act will be fully repealed or if only certain climate provisions will be affected. The new administration might opt for an “all-of-the-above” strategy, modifying some climate initiatives while retaining elements that align with its broader goals.

Despite political uncertainties, Nel continues to expand its operations across the United States. Last year, the company completed the expansion of its PEM factory in Connecticut, increasing its annual production capacity from 50 to 500 MW.


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