by Scott McClallen
Norwegian hydrogen company Nel Hydrogen says it will create a $400 million automated gigawatt electrolyzer manufacturing facility in Michigan expected to create 500 manufacturing jobs.
Nel hasn’t finalized a location for the new gigafactory, which will be the first in the United States to manufacture equipment for the production of liquid alkaline electrolysis.
“The choice of Michigan is based on an overall assessment of what the state can offer in terms of financial incentives, access to a highly skilled workforce, and cooperation with universities, research institutions, and strategic partners,” Nel CEO Hakon Volldal said in a statement.
Nel specializes in using electrolyzer technology to produce renewable hydrogen and hydrogen fueling equipment for road-based vehicles. Michigan hopes to use hydrogen, a colorless and odorless gas, to decarbonize industries such as transportation, refining steel, and ammonia.
Hydrogen can be produced using renewable energy, nuclear, natural gas, coal, and oil, but most hydrogen is produced nationwide via natural gas, according to the Department of Energy. When hydrogen is used in a fuel cell, the only byproduct created is water.
The company cited the short distance to partner General Motors, headquartered in Detroit, as a deciding location factor. The companies collaborated to develop Nel’s Polymer electrolyte membrane technology.
The gigafactory will be built to match supply with demand. When fully developed, the Michigan facility will have a production capacity of up to 4GW of Alkaline and PEM electrolyzers. At 90% capacity, the facility will support about 1.4 million cars regularly.
Gov. Gretchen Whitmer, in a release Wednesday, credited landing the factory to her January trip to Europe, which cost taxpayers $44,117. The second-term governor said the investment will build on Michigan’s efforts to build cars, chips, and clean energy.
“As a major player in all three of these sectors, Michigan is serious about leading hydrogen development and winning today’s investment proves that the best manufacturing in the world happens right here in Michigan,” Whitmer said in a statement. “Let’s keep competing with anyone and working with everyone to bring home transformational investments in manufacturing so we can spur economic growth and create good-paying jobs right here in Michigan.”
House Speaker Joe Tate, D-Detroit, welcomed the project.
“Our highly skilled workforce and legacy as the center of manufacturing innovation means Michigan is an ideal location for the next generation of industry,” Tate said in a statement. “Nel Hydrogen will bring hundreds of jobs and critical investment to our diverse economy, benefiting all Michiganders.”
In September, Michigan joined a Midwest hydrogen coalition to pursue clean hydrogen development as an alternative to gas and diesel fuel. The Department of Energy opened a $7 billion funding opportunity to create a national clean-hydrogen network.
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Scott McClallen is a staff writer covering Michigan and Minnesota for The Center Square. A graduate of Hillsdale College, his work has appeared on Forbes.com and FEE.org. Previously, he worked as a financial analyst at Pepsi.
Photo “Gretchen Whitmer and Nel Hydrogen” by Nel Hydrogen.
