Norwegian hydrogen company Nel will establish a $400 million manufacturing plant in Michigan, creating an estimated 500-plus jobs at what officials said will be the first U.S. facility to make alkaline electrolyzer equipment used to produce renewable hydrogen.
Nel Hydrogen, a subsidiary of Oslo-based Nel ASA and a collaborator with General Motors Co., is still evaluating where in the state to put the factory.
The project was announced Wednesday by Nel CEO Håkon Volldal, Michigan Gov. Gretchen Whitmer, U.S. Commerce Secretary Gina Raimondo, and state and local economic development officials attending the SelectUSA Investment Summit in Maryland.
“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,” Volidal said in a statement in which he also highlighted “personal engagement from the governor and her team.”
Another factor was the proximity to GM, headquartered in Detroit.
The announcement came months after Whitmer met with Nel executives during a trade mission to Norway and Switzerland. She said she was “thrilled” to land the plant over other states, boosting efforts to grow Michigan’s car, microchip and clean energy industries.
“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.
No information was released about the incentives package, when the factory will open and whether it will be newly built or located in an existing facility.
It will grow in steps to match supply with demand, according to the Michigan Economic Development Corp., which said there will be a “critical need” for U.S.-manufactured electrolyzers.
Nel specializes in electrolyzer technology. Electrolysis, the process of using electricity to split water into hydrogen and oxygen with an electrolyzer device, is a promising option for carbon-free hydrogen production from renewable and nuclear resources, according to the U.S. Department of Energy.
In November, Nel and GM announced an agreement to help accelerate the industrialization of Nel’s proton exchange membrane (PEM) electrolyzer platform. The companies are looking to enable more cost-competitive sources of renewable hydrogen.
Michigan last month committed its support for two clean-hydrogen hub projects that are vying for a share of $7 billion in federal funding. The funds, which are part of the 2021 Bipartisan Infrastructure Law, will help to establish six to 10 regional “H2Hubs” to speed the use of hydrogen to deliver or store large amounts of energy.
“We are grateful for the ongoing legislative support of economic development programs that supported this opportunity,” MEDC CEO Quentin Messer Jr. said.
While officials did not indicate which locations Nel is evaluating, Detroit Regional Partnership President and CEO Maureen Donohue Krauss attended the news conference and said attracting a “global innovator” in hydrogen technology “speaks volumes about the talent and advanced manufacturing in our region.”