Nel ASA has been selected to receive up to $41 million in tax credits under the Qualified Energy Advanced Projects Tax Credit program (48C). The company had already received $90 million in funding from the Department of Energy (DoE) in March. This program, supported by the Inflation Reduction Act, aims to stimulate investment in advanced energy technologies in the United States. These credits, representing 30% of eligible investments, are conditional on meeting wage and apprenticeship requirements.
A growing presence in the United States
In addition to tax credits, Nel has secured nearly $170 million in cumulative support from the Department of Energy and the State of Michigan for its planned facility. This support includes cash incentives amounting to around half of this amount. The company, which has been operating in Connecticut for decades, is renowned for its advances in PEM electrolyzer research and development.
Expansion and industrialization
Nel is planning a major expansion and industrialization of its production capacity in Plymouth Charter Township, near Detroit. This site will become one of the world’s largest electrode facilities, where Nel will produce its next-generation pressurized alkaline and PEM technologies. This expansion marks a significant step in Nel’s commitment to strengthening its manufacturing footprint in the United States.
Nel’s expansion is positioned to play a crucial role in accelerating the production of clean hydrogen, supporting decarbonization objectives. With the increase in production capacity, Nel can meet the growing demand for green hydrogen solutions, essential for various industrial sectors and clean mobility.
