Nel ASA (Nel) announced that it has made a final investment decision to expand its PEM (proton exchange membrane) cell manufacturing facility in Wallingford, Conn. This expansion is intended to increase the annual production capacity to approximately 500 MW by 2025.
An important step for Nel
Nel’s CEO, Håkon Volldal, described the expansion as a “major milestone” for the company. He said the expansion would significantly increase PEM production capacity while reducing the cost of the battery and improving its efficiency.
Investment and production schedule
The investment cost for the expansion is estimated at approximately NOK 260 million, and the new production line is expected to reach its full capacity by 2025. The development of the ~500 MW PEM production line will contribute to Nel’s other expansion plans in the United States, where the company plans to establish a Gigafactory.
The planned Gigafactory, which will have a potential production capacity of about 4 GW, will be split between PEM and alkaline technologies. Nel is currently studying three alternatives in three different states for the Gigafactory location, and a final decision is expected soon.
The expansion of Nel
Nel is also expanding its production capacity in Norway, where the company recently started construction of the second production line at the Herøya site. Generation capacity is expected to reach approximately 1 GW by April 2024.
According to Volldal, Nel has received significant orders for large-scale electrolyzer projects in recent months. The company has increased production from three to five shifts to meet demand, which means that production now runs 24 hours a day, including weekends.
The expansion of Nel’s PEM cell manufacturing facility in Connecticut is an important step in the company’s growth plans to become a leading player in the global hydrogen market. With the expansion of its production capacity, Nel is positioned to meet the growing demand for green hydrogen and contribute to the global transition to a low carbon future.
