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Detroit Local NewsMichigan, US Department of Energy inject $75 million into Nel’s hydrogen production...

Michigan, US Department of Energy inject $75 million into Nel’s hydrogen production facility

Detroit, Michigan – The US Department of Energy (DOE) along with the state of Michigan have provided a total of $75 million in financial incentives and grants to support Nel’s upcoming electrolyser manufacturing plant in Michigan.

“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,” says Nel’s President and CEO, Håkon Volldal, in a press release.

“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,” he says.

On March 13, the DOE announced a $50 million grant to Nel for direct investment in the new gigafactory and workforce development in the Detroit area. This collaboration includes partnerships with General Motors, Macomb Community College, and Wayne State University’s College of Engineering, among others. The investment aims to boost the domestic production of electrolysers, foster a comprehensive clean hydrogen economy, and develop an industrial manufacturing training program.

Simultaneously, Michigan has committed $25 million in direct investment support, aiming to position itself as a leader in the clean energy sector.

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“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,” says Governor Whitmer. “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.”

“Today’s announcement is another example of how Michigan is leading America’s technology and clean energy future,” says Lieutenant Governor Garlin Gilchrist II. “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 received about $50 million from Michigan to aid its electrolyser manufacturing plant, as mentioned in a press release on July 8, 2023. The total assistance from both federal and state entities now stands at roughly $125 million.

Once fully operational, the facility in Michigan is expected to reach an annual production capacity of 4 GW. Nel plans to produce its cutting-edge electrolyser technologies at this new site, including the PEM stacks developed in collaboration with General Motors, and pressurized alkaline stacks.

Read also: Michigan gives Lucid Motors $6 million grant, the company to hire more than 260 people in the state

However, a final decision on the investment is pending and will hinge on the market demand for electrolysers.