Michigan wins new gigafactory over numerous other states, underscoring state’s leadership in clean energy, sustainability
Gov. Gretchen Whitmer with Nel Hydrogen CEO Håkon Volldal and U.S. Secretary of Commerce Gina Raimondo at the SelectUSA Investment Summit in Maryland
Today, Governor Gretchen Whitmer announced that Norwegian hydrogen company Nel Hydrogen is establishing an automated gigawatt electrolyzer manufacturing facility in Michigan. The project is expected to generate a total capital investment of up to $400 million and create more than 500 good-paying clean energy manufacturing jobs that build on Michigan’s leadership in the hydrogen space.
Gov. Whitmer met with executives from Nel during her January 2023 investment mission to Norway and Switzerland and made the case that with its attractive business climate, talented workforce, and focus on clean hydrogen development, Michigan was the smart location for a global company to establish operations and create high-tech manufacturing jobs.
“We’re thrilled to bring home up to $400 million in investment from Nel Hydrogen creating more than 500 good-paying, clean energy jobs right here in Michigan,” said Governor Whitmer. “Earlier this year, I went on an economic mission to Europe to show the world what Michigan has to offer, and as a result of our efforts on the trip, we secured an investment from Nel to continue building on our leadership in 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. 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.”
The Governor was joined for the announcement at the 2023 SelectUSA Investment Summit in Maryland with Nel CEO Håkon Volldal, U.S. Secretary of Commerce Gina Raimondo, along with members of Team Michigan including Quentin L. Messer, Jr., CEO of the Michigan Economic Development Corporation (MEDC) and Maureen Krauss, President of the Detroit Regional Partnership.
“From Day One, the Biden Administration has been committed to revitalizing America’s manufacturing industry and combatting climate change by investing in clean energy technologies,” said Secretary Raimondo. “Today’s announcement at SelectUSA from Nel is helping us fulfill both of those goals, and building on Governor Whitmer’s work to make Michigan a leader in clean energy.”
Over the past year, Nel has assessed a wide range of states for the location of its new manufacturing facility, before choosing Michigan for the project.
“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,” said Nel CEO Håkon Volldal. “I will also highlight the personal engagement from Governor Whitmer and her competent and service-minded team.”
The company cited the short distance to collaboration partner General Motors, headquartered in Detroit, as an additional deciding factor in the choice of Michigan. The two companies collaborated to develop further and improve Nel’s PEM electrolyzer technology.
Nel is still evaluating locations in Michigan for the new gigafactory, which will be the first facility in the United States to manufacture equipment for the production of liquid alkaline electrolysis. Through electrolysis, hydrogen can be produced from water and renewable energy. Hydrogen, the most abundant and lightest element in the universe, can play a significant role in accelerating Michigan’s clean-energy transition away from fossil fuels.
Nel has a history tracing back to 1927 and is today a leading pure play hydrogen technology company with a global presence. The company specializes in electrolyzer technology for production of renewable hydrogen and hydrogen fueling equipment for road-based vehicles. Nel’s product offerings are key enablers for a green hydrogen economy, making it possible to decarbonize various industries such as transportation, refining steel and ammonia.
There is a critical need for U.S. manufactured electrolyzers. Investment in research and innovation through the U.S. Department of Energy’s (DOE) Hydrogen and Fuel Cell Office has led to technology advances that will now be transitioned to gigawatt scale real world manufacturing. Further, DOE’s $7 billion funding opportunity, announced in September 2022, will create regional “H2 Hubs” that will form the foundation of a national clean-hydrogen network. This is part of a broader $8 billion hydrogen hub program – funded by President Biden’s Bipartisan Infrastructure Law – which will lead to the selection of six to 10 hubs, according to the Energy Department announcement. Michigan is in conversations and actively competing for this opportunity.
“We are thrilled to be welcoming this significant investment by Nel Hydrogen as we continue to position Michigan as a leader in clean technology while highlighting our state as a climate winner,” said Quentin Messer, Jr., CEO of the MEDC and President and Chair of the Michigan Strategic Fund. “Gov. Whitmer’s recent trip to Norway was critical in securing this tremendous investment in Michigan’s clean energy future. We are grateful for the ongoing legislative support of economic development programs that supported this opportunity. Today’s announcement demonstrates Michigan’s culture of innovation and commitment to providing creative solutions that make a tangible difference in the lives of our friends and neighbors.”
“The road to advanced mobility and a clean-energy future goes through the Detroit Region,” said Maureen Donohue Krauss, president and CEO, Detroit Regional Partnership. “Hydrogen is playing a major role in redefining how the world moves and Nel is at the forefront of that evolution. Attracting such a global innovator in this rapidly emerging, cutting-edge industry speaks volumes about the talent and advanced manufacturing in our region.”
To read the full announcement, visit here. To see why companies like Nel Hydrogen are choosing to invest and grow in Michigan, visit www.michiganbusiness.org/why-michigan/.
|
