Posted on 08 Apr 2024
Electric Hydrogen (EH2) is progressing electrolyser manufacturing at its under-construction gigafactory in Devens, Massachusetts, with the first stacks set to be shipped to a customer project in southeast Texas later this year.
Announced last May, the company’s first factory will produce its 100-megawatt electrolysers, with an annual manufacturing capacity of 1.2 gigawatts. Start-up activities are imminent, Kallanish understands.
In September 2023, EH2 announced the first order of its 100-MW electrolysers – a definitive agreement with New Fortress Energy (NFE) to supply the systems to NFE’s green hydrogen project in Texas. Expected to be one of North America’s largest green hydrogen facilities, the plant will commence full commercial operations in 2025.
EH2 claims its fully integrated electrolyser plant will deliver the “lowest cost green hydrogen on Earth.” The company’s electrolysis systems can produce about 50 tonnes/day of green hydrogen.
On Thursday, EH2 said it was awarded an $18.3 million tax credit from the US government to support its Devens gigafactory. The funding, in the form of a transferable tax credit from the Department of Energy (DOE), Treasury Department and the Internal Revenue Service, is part of IRA’s 48C initiative.
The fresh funds come just three weeks after the DOE awarded a $46.3m grant to the company under the Bipartisan Infrastructure Law’s Clean Electrolysis Program. With the new credit, total federal support to the company comes to $65m.
“The DOE’s continued investment will allow Electric Hydrogen to increase its rate of production on a timeline that can address the growing customer demand for green hydrogen,” states Jigish Trivedi, Electric Hydrogen’s senior vice-president of manufacturing.
The US government is ramping up efforts to build domestic electrolyser manufacturing capacity, as the DOE aims to bring down the cost of green hydrogen to $1/kilogram of hydrogen by 2031. This week, for instance, Norway’s Nel ASA was awarded an additional $41m in tax credits for its planned manufacturing expansion in Michigan for pressurised alkaline and proton exchange membrane (PEM) technologies.
Source:Kallanish
