Nel ASA: Receives additional USD 75 million in support for Michigan facility.
Nel ASA (Nel) (OSE: NEL) – The US Department of Energy (DOE) and the state of Michigan have awarded a collective USD 75 million in cash incentives and grants for Nel’s next electrolyser production facility in Michigan.
Håkon Volldal, Nel’s President and CEO, said:
The support from the Department of Energy and the state of Michigan is crucial for realizing our factory.
“which will create new green industrial jobs and be a significant contribution to the energy transition,”
“It is encouraging to see the Department of Energy taking these strategic steps to stimulate a clean energy economy, and we appreciate their long-time support to take our products from R&D to commercial products,”
On 13 March, the Department of Energy announced that they have granted Nel USD 50 million in direct investment support for the company’s planned new US gigafactory and workforce development initiatives in the Detroit region. Partnering with General Motors, Macomb Community College, Wayne State University’s College of Engineering, and others, DOE’s investment will further enhance domestic electrolyser manufacturing production capacity while building a robust clean hydrogen value chain and an industrialized manufacturing training program.
In parallel, the state of Michigan awarded USD 25 million in direct investment support to lead the nation in the clean energy transition.
Governor Whitmer, said:
By harnessing our Make it in Michigan Competitiveness Fund and partnering with the Biden-Harris Administration, we are creating more than 500 good-paying, high-tech jobs in Plymouth.
“Today’s investment in Nel Hydrogen will create a hydrogen production facility and ensure we stay on the cutting-edge of clean energy production and advanced manufacturing. Let’s keep working together to bring jobs and projects home as we grow our economy and deliver for Michigan families.”
Lieutenant Governor Garlin Gilchrist II, said:
Today’s announcement is another example of how Michigan is leading America’s technology and clean energy future.
“Because of a matching investment from the Michigan Competitiveness Fund, this federal grant will enable our partners to create more than 500 good-paying, high-tech jobs in Plymouth. Governor Whitmer and I will keep working to create jobs and win projects that will grow our economy and help more people `make it’ in Michigan.”
Nel has previously been awarded approximately USD 50 million from the state of Michigan in support of this electrolyser production facility (see the press release issued on 8 July 2023). Total support from federal and state authorities amounts to approximately USD 125 million.
Fully built out, the Michigan site is expected to have an annual nameplate production capacity of 4 GW. In the planned new facility, Nel will manufacture its next-generation electrolyser technologies: the PEM stacks currently being developed together with General Motors, and pressurized alkaline stacks.
A final investment decision has not yet been made and depends on market demand for electrolysers.
READ the latest news shaping the hydrogen market at Hydrogen Central
Nel ASA: Receives additional USD 75 million in support for Michigan facility. source
