Nel to Expand PEM Electrolyzer Production Capacity

25 Million Dollar Investment Nel to Expand PEM Electrolyzer Production Capacity

2023-03-02 Source: Press release Ahlam Rais 1 min Reading Time

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Nel has plans to expand the production capacity at its PEM electrolyzer manufacturing facility in Wallingford, Connecticut in the US. With this move, the company aims to increase PEM production capacity substantially, reduce stack cost and improve stack efficiency.

The investment cost is estimated at approximately 25 million dollars and the new production line is expected to reach nameplate capacity in 2025.(Source: Pixabay) — The investment cost is estimated at approximately 25 million dollars and the new production line is expected to reach nameplate capacity in 2025.
(Source: Pixabay)

Oslo/Norway – Nel ASA has taken the final investment decision to expand the production capacity at its PEM electrolyzer manufacturing facility in Wallingford, Connecticut. The expansion will bring annual production capacity towards 500 MW in 2025. “This is an important milestone for Nel,” says Nel’s CEO, Håkon Volldal. “With this expansion, we will increase PEM production capacity substantially and simultaneously reduce stack cost and improve stack efficiency.”

The investment cost is estimated at approximately NOK 260 million (25 million dollars), and the new production line is expected to reach nameplate capacity in 2025.

“Last year we opened the world's first fully automated alkaline electrolyzer plant in Herøya, Norway. Now we will industrialize the PEM platform, and the expansion in Wallingford is an important first step”, says 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,” says Volldal. Nel is also expanding in Norway. The company recently started constructing the second production line at the Herøya facility, and 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 electrolyzer 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”, says Volldal.

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