Michigan Chosen to Host $400 Million Hydrogen Equipment Factory

Photo: Kevin Dietsch (Getty Images)

Norwegian company Nel Hydrogen has announced that it will build a manufacturing facility for around $400 million in Michigan. The factory will be the first in the United States to produce electrolyzers, machines that use electricity to split water into hydrogen and oxygen. Nel cited the short distance to its partner General Motors as one of the factors behind the choice.

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According to MLive.com, Michigan Governor Gretchen Whitmer met with Nel Hydrogen executives in January to advocate for the state’s selection during an investment trip to Norway and Switzerland. The company had assessed several possible locations across the United States before Michigan was chosen. However, an exact location within the state has yet to be decided.

In a statement, Whitmer said:

“We’re thrilled to bring home an up to $400 million investment from Nel Hydrogen creating more than 500 good-paying, clean energy jobs right here in Michigan. 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.”

The facility at 90 percent capacity will support around 1.4 million cars on a regular basis. It should be noted that there are currently zero hydrogen vehicle fueling stations in Michigan. According to the U.S. Department of Energy, the 57 hydrogen stations across the country. There are 56 locations in California and a single station in Hawaii.

The Nel facility will help Michigan move towards its goal of establishing a carbon-neutral economy by 2050. Though, the state is giving financial incentives to an alternative fuel source for personal vehicles that are viewed as inferior compared to electric vehicles.