Plymouth Charter Township, Michigan, has been chosen as the site for Nel Hydrogen's state-of-the-art automated gigafactory. This advanced facility is slated to produce electrolyzer technology for green hydrogen production, with a projected creation of 517 high-paying jobs and an investment of $400 million into the local community. The decision underscores Michigan's leadership in advanced manufacturing and clean energy.
Hydrogen, as the lightest and most abundant element in the universe, holds significant promise as a clean energy source. Through the process of electrolysis, hydrogen can be produced from water using renewable energy. This green hydrogen is poised to play a pivotal role in Michigan's shift away from fossil fuels, contributing to a sustainable and eco-friendly energy landscape.
Michigan Governor Gretchen Whitmer, a staunch advocate for clean energy and job creation, expressed her excitement about Nel Hydrogen's investment. She noted that an economic mission to Norway earlier in the year played a crucial role in attracting Nel Hydrogen to Michigan. The company's decision to select Michigan over other states and nations was influenced by several factors, including the state's skilled workforce, robust network of universities, and its leading position in the mobility industry.
The project is expected to receive support from the Michigan Business Development Program through a $10 million grant. Additionally, the Michigan Strategic Fund (MSF) board has approved a 15-year, 100-percent State Essential Services Assessment Exemption Request, potentially worth up to $6.25 million, to provide financial backing for the project.
Spanning an impressive 507,000 square feet, the new manufacturing facility will be dedicated to producing Proton Exchange Membrane and Alkaline hydrogen electrolyzers. This facility is a purpose-built greenfield construction, tailored to meet Nel Hydrogen's specific requirements. The choice of Plymouth Charter Township aligns with the company's strategic objectives, offering access to a highly educated workforce, esteemed research institutions, and proximity to collaborative partner General Motors.
Håkon Volldal, CEO of Nel Hydrogen, emphasized the attractiveness of Plymouth Charter Township. He cited the region's advantages, including a skilled workforce, research institutions, and support from the Michigan government and authorities, which have offered an appealing financial package for the company.
Nel Hydrogen, with a storied history dating back to 1927, is a notable player in the hydrogen technology sector. The company specializes in electrolyzer technology for renewable hydrogen production and hydrogen fueling equipment for road vehicles. Nel's products play a pivotal role in enabling a green hydrogen economy and facilitating the decarbonization of various industries, such as transportation, refining, steel, and ammonia.
While Nel Hydrogen's parent company is headquartered in Oslo, Norway, this marks the company's first investment in Michigan. The decision aligns with Michigan's dedication to advancing clean technology and clean energy solutions.
Michigan has earned recognition as a leader in clean energy jobs in the Midwest. According to the Clean Jobs America report by Environmental Entrepreneurs, the state added over 5,400 workers in clean energy in 2022, bringing the total to nearly 124,000 individuals employed in clean energy and clean transportation careers.
A report jointly released by the Michigan Economic Development Corporation (MEDC) and the University of Michigan (U-M) last year underscored the significant role hydrogen can play in Michigan's clean-energy transition. The “Hydrogen Roadmap for the State of Michigan,” prepared by U-M's Center for Sustainable Systems, explores the potential of hydrogen across various aspects, from production to end-use applications.
In another significant development, the MSF board approved support for Plastic Omnium New Energies, which plans to establish the country's largest hydrogen storage manufacturing plant in Michigan, further solidifying the state's position in clean hydrogen development.
Nel Hydrogen's gigafactory is not merely an infrastructure investment; it signifies an investment in Michigan's future. It showcases the state's commitment to advanced manufacturing, clean energy innovation, and job creation. The gigafactory is anticipated to bring over 500 new jobs to the community and will play a pivotal role in transforming vacant properties into engines of economic development.
This substantial investment reaffirms Michigan's standing as a leader in the clean energy revolution. It reflects a collaborative effort among government, industry, and local communities to drive progress toward a sustainable future. As global demand for clean, sustainable energy solutions continues to rise, Michigan is poised to meet these challenges head-on, fostering innovation, combating climate change, and creating a more sustainable future for all.
