That’s driven largely by the cost of electricity so it can vary widely by location. Hydrogen that is produced using electricity from a grid powered by renewable energy, such as wind and solar, can cost about $5 per kilogram, according to the U.S. Fuel cell vehicles are electric vehicles that instead of relying on lithium ion batteries, depend on the chemical energy of hydrogen.Ĭharles Freese V, executive director of General Motors’ Hydrotec business, said having Nel nearby will make it easier to share technology, people and resources, which should mean fewer challenges and faster progress. GM is developing and commercializing hydrogen fuel cells for large vehicles and for power generation. The idea is that if they can drive down these costs, Nel can grow its business, and GM and its customers will have the green hydrogen they need. One problem with trying to drop in clean hydrogen as a substitute fuel is the vast amounts of renewable electricity it takes to split the water. Nel and General Motors announced in November that they would work together to make electrolyzers more efficient and less expensive.
“And I think we, as an industry, are being seen as part of the solution, not just some kind of funky laboratory technology.” There are also plans to use hydrogen in power generation and transport to reduce carbon dioxide emissions. The Inflation Reduction Act offers a sizeable tax credit for producing green hydrogen, as an incentive to replace fossil fuels in heavy manufacturing. It’s getting large orders from the United States and Volldal expects more. Nel, which was founded nearly a century ago, is also doubling its manufacturing plant in Herøya, Norway, from 500 megawatts to 1 gigawatt, and expanding the one in Wallingford, Connecticut from 50 megawatts to 500. Gretchen Whitmer called the new Nel plant a “phenomenal opportunity.” She said cleaner, alternative sources of energy improve the quality of people’s lives and create good-paying jobs. Getting the plant up and running will take an estimated $350 million. Michigan also offered attractive financial incentives, partnerships with universities and training programs, and strong support from the governor’s office, Volldal said. Nel looked at every state, but picked the longtime home of the American automotive industry for its new “gigafactory” to be near General Motors.
CEO Håkon Volldal said the company will make electrolyzers in the Detroit area to supply up to 4 gigawatts’ worth of hydrogen each year, making it among the largest such factories in the world. The Norwegian company makes devices that take water and split it into hydrogen and oxygen, known as electrolyzers, as well as fueling stations. The green hydrogen company Nel announced plans Wednesday to build a massive new plant in Michigan as it works with General Motors to drive down the cost of hydrogen.
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