Nel wins extra funds for 4-GW Michigan electrolyser factory

Norwegian hydrogen solutions provider Nel ASA (OSE:NEL) on Wednesday said it has secured USD 75 million (EUR 68.5m) in US federal and state government funding to build a 4-GW factory for alkaline and proton exchange membrane (PEM) electrolysers in Michigan.

The USD-400-million production plant will deploy Nel’s fully automated electrolyser concept used at its factory in Heroya, Norway. The manufacturer last September chose the Plymouth Charter Township, a suburb area of Detroit, to house the giga-scale facility that will produce PEM stacks and pressurised alkaline stacks.

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Under a national programme supporting the domestic production of electrolysers and critical equipment for the green hydrogen industry, Nel will receive USD 50 million in grant funding. Its proposal was one of 52 dedicated to the research and development (R&D) in that field that received a total funding basket of USD 750 million.

Additionally, Nel’s gigafactory plan will receive a USD-25-million direct investment from the state of Michigan, topping a previous financing commitment of USD 50 million.

The fresh financing brings the federal and state support grant funding for the project to USD 125 million, the Norwegian firm said. It has still not taken a final investment decision, with the move depending on market demand for electrolysers.

(USD 1.0 = EUR 0.914)