Nel has made a big move in the US market by deciding to expand its PEM electrolyser manufacturing facility in Wallingford, Connecticut.
The expansion will bring annual production capacity towards 500 MW in 2025, a significant increase for the company. Nel’s CEO, Håkon Volldal, said, “This is an important milestone for Nel. With this expansion, we will increase PEM production capacity substantially and simultaneously reduce stack cost and improve stack efficiency.”
The investment cost for the expansion is estimated at approximately NOK 260 million, and the new production line is expected to reach nameplate capacity in 2025. Nel recently opened the world’s first fully automated alkaline electrolyser plant in Herøya, Norway. “Now we will industrialize the PEM platform, and the expansion in Wallingford is an important first step,” said Volldal.
The development of the ~500 MW PEM production line will be a substantial contributor to further expansion plans in the US, where developing a quality production concept is crucial for preparing Nel’s planned Gigafactory.
The planned Gigafactory will have a potential of up to ~4 GW production capacity, distributed between both PEM and Alkaline. “We are considering three attractive alternatives in three different states and will make a final decision shortly,” said Volldal. The decision is a significant step forward for Nel, as it looks to establish itself as a major player in the US hydrogen fuel market.
Nel is also expanding in Norway, where it recently started constructing the second production line at the Herøya facility. The production capacity is expected to reach approximately 1 GW in April 2024. “During the last months, we have received significant purchase orders for large-scale electrolyser projects. Therefore, we have ramped up production from three to five shifts, meaning that production is now running around the clock, also on the weekends,” said Volldal.
Nel is making some major moves in the hydrogen industry. By expanding its PEM electrolyser manufacturing facility in Wallingford and constructing a second production line in Herøya, the company is positioning itself to be a major player in the industry.
The expansion in Wallingford is a significant milestone, and the development of the ~500 MW PEM production line will contribute to Nel’s further expansion plans in the US. The decision to establish a Gigafactory with a potential of up to ~4 GW production capacity is also a big move for the company.