United States – Nel, a Norwegian hydrogen company, has selected Plymouth Charter Township, Michigan, as the location for its next gigafactory. Fully developed, the factory will be among the world’s largest electrode manufacturing facilities, with a total annual capacity of 4 GW Alkaline and PEM technology.
The Michigan Strategic Fund (MSF) has awarded Nel a USD 10 million Michigan Business Development grant and a 15-year, 100% State Essential Services Assessment (SESA) Exemption Request, valued at up to USD 6.25 million. Nel has so far secured more than USD 50 million in support for its Michigan site, and this amount could increase to around USD 150 million pending approval of additional state and federal applications.
Pending FID
The manufacturing facility in Plymouth will build on Nel’s fully automated electrolyser concept, which the company has developed at its production facility in Herøya, Norway. Similarly, the company’s expansion of the facility in Wallingford will play a critical role in creating a blueprint for scaling up the production of Nel’s PEM electrolysers.
The factory will be built in steps to match supply with demand. A final investment decision for constructing this facility has not been made yet.
New jobs
Nel’s new gigafactory in Michigan has the potential to have a significant impact on the global hydrogen economy. The factory will produce a large volume of high-quality electrolysers, which are essential for the production of green hydrogen. Green hydrogen is produced using renewable energy sources, such as solar and wind power, to split water into hydrogen and oxygen.
In addition to its environmental benefits, Nel’s new gigafactory is also expected to have a positive economic impact on Michigan. The factory is expected to create hundreds of new jobs and generate billions of dollars in economic activity.
