Norwegian company Nel has secured a major financial boost for its upcoming electrolyser production facility in Michigan.
The hydrogen electrolyser manufacturer received collective cash incentives and grants totaling USD 75 million from the U.S. Department of Energy (DOE) and the State of Michigan.
Nel ASA’s president and CEO, Håkon Volldal, highlighted the significance of the governmental support in bringing the company’s innovative project to life. He further applauded the DOE’s strategic efforts in facilitating a clean energy economy and advocated their continuous support in transitioning their products from research and development phase to commercial distribution.
Nel ASA aims to deploy the awarded funds in establishing a green hydrogen value chain for its planned US gigafactory and investing in workforce development initiatives in the Detroit region. In this endeavor, they are in partnership with notable entities such as General Motors, Macomb Community College, Wayne State University’s College of Engineering, among others.
Parallelly, the State of Michigan rewarded Nel with an additional USD 25 million direct investment support. This strategic move is designed to lead the nation’s green energy transition by focusing on clean energy production and advanced manufacturing. Michigan Governor, Whitmer, noted that the projected facility inception would lead to the creation of more than 500 high-tech jobs in Plymouth while advancing Michigan’s position on the forefront of clean tech innovation.
Simultaneously, Nel ASA’s efforts got highly appreciated by Lieutenant Governor Garlin Gilchrist II. He emphasized how the mutual investments from the Michigan Competitiveness Fund and the federal grant are nudging Michigan into the future of clean energy and technology.
The upcoming hydrogen production facility funded in part by the DOE and the state is not the company’s first benefit. Nel ASA had previously received financial aid of approximately USD 50 million from the State of Michigan for this factory. Cumulatively, total support from federal and state authorities amounts to USD 125 million.
Upon full completion, the Michigan site is predicted to yield an annual nameplate production capacity of 4 GW. The factory has several ambitious plans to produce their next-generation electrolyser technologies- Perthro-alkaline stacks, and PEM stacks currently in the development stage with General Motors. However, the final investment decision is contingent on assessing the market demand for electrolysers.
