Nel secures $29m IRA tax credit boost for 4GW electrolyser factory in Michigan
Nel has secured $29m in additional investment tax credits for its planned electrolyser gigafactory in Michigan, US, bringing its total funding to around $200m.
The extra funding came as part of the Qualifying Advanced Energy Project Tax Credit (48C) programme, which is funded by the Inflation Reduction Act (IRA) and managed by the US Department of Energy, Department of Treasury and the Internal Revenue Service.
Nel has yet to make a final investment decision (FID) on its 4GW factory, which is expected to be worth $400m. In an online statement, the Norwegian company said the “build-out of the site depends on demand.”
Announced in 2023, the facility is scheduled to produce both alkaline and PEM electrolyser technology. Its 4GW output would make it one of the world’s largest manufacturing plants. However, with President-Elect Donald Trump set to enter office in a week’s time, concerns are mounting over the potential shift in policy direction, raising fears that the US could lose momentum on its clean energy advancements.
Concerns range from the potential complete repeal of key legislation, like the Inflation Reduction Act (IRA), to a more cautious approach where only select climate provisions may be cut. The Trump-Vance administration could adopt an “all-of-the-above” strategy, making isolated cuts to the IRA’s climate provisions while keeping elements that align with the administration’s broader policy goals.
Nevertheless, Nel is continuing to lead the technology shift in the US. Last October, the electrolyser manufacturer completed the expansion of its PEM factory in Connecticut, increasing its annual capacity from 50 to 500MW.
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