Cummins Inc. will invest more than $1 billion to upgrade engine factories in three states and purchase equipment for producing hydrogen in Minnesota.
The projects had already been publicised. But there had been no capital expenditures. The 998,000-square-foot plant in western New York will receive $452 million in upgrades from the engine and power systems manufacturer at its Jamestown Engine Plant. For North Carolina and Indiana, Cummins said it would make specific announcements later.
Jamestown will create the first internal combustion engine platform that is independent of gasoline. As an internal combustion engine, it is capable of burning natural gas, diesel, and eventually hydrogen. On Cummins’ path to Destination Zero, which includes a 2050 aim to produce solely zero-emission engines, this technology serves as a stopgap.
The X15N, a new 15-litre engine platform made in Jamestown, made its debut in China in 2020. Later this month, Walmart will test the X15N on renewable natural gas for the first time.
In place of the outdated 9-litre and 12-litre engines, Cummins just launched a new 10-litre engine. It will also have the ability to run on a variety of low-carbon fuels.
Cummins products make up over half of all medium- and heavy-duty truck engines in use today.
Announcements of Cummins’ investments coincide with Biden’s visit.
The investment news was released on the same day that President Joseph Biden visited a Cummins facility in Fridley, Minnesota, on Monday. To convert 25% of the plant’s 400,000 square feet of manufacturing space to hydrogen electrolyzer production, the corporation is investing $10 million. The process of separating water into hydrogen and oxygen is known as electrolysis.
In a press release, Cummins CEO Jennifer Rumsey stated, “In just a few weeks, we will start producing one of the critical pieces of technology for green hydrogen production that will help decarbonize our economy and drive the clean energy transition – the electrolyzer.”
The Cummins Power Systems plant will initially have a 500-megawatt annual production capacity. It might increase to 1 gigawatt. By 2024, Cummins anticipates that the plant will increase its workforce from 900 to 1,000.
The electrolyzers will be available in three capacities, with the 2.5-megawatt model producing 1 tonne of hydrogen every day. According to Alex Savelli, managing director of Electrolyzers Americas for Accelera by Cummins, that would generate enough hydrogen fuel to run 30 trucks for 300 miles.
Rumsey claimed that Cummins’ choice to invest in its US factories was influenced by the federal investment made possible by the infrastructure package and the Inflation Reduction Act.
We need the support of legislative leaders and the Biden administration because we can’t accomplish this on our own, she said.