Nel gets more tax credits for Michigan gigafactory project
Norwegian hydrogen solutions provider Nel ASA (OSE:NEL) has secured about USD 29 million (EUR 28.3m) in additional investment tax credits for its planned gigafactory in Michigan.The company said that the proceed will come under the Qualifying Advanced Energy Project Tax Credit (48C) programme. With the new funds in place, the Norwegian electrolyser manufacturer has obtained almost USD 200 million in tax credits and other grants from the state of Michigan and the Department of Energy.The amount of tax credits a fully-owned unit of Nel will receive under the 48C programme is equal to 30% of the value of qualifying investments, the company noted. The funding, the receipt of which is subject to certain conditions, follows a USD-41-million award of investment tax credits for the project last April.When fully ramped up, the Michigan factory will have an annual nameplate capacity of 4 GW. The site will handle the production of the PEM stacks currently being developed together with General Motors, along with pressurised alkaline stacks. A final investment decision for the project has not been taken yet and its construction will depend on demand, Nel noted.This week, the Norwegian firm announced plans to temporarily cease production at its electrolyser factory in Heroya, Norway, as part of a capacity adjustment process reflecting the slower-than-anticipated demand. The move will lead to job cuts, mostly in the Alkaline business segment in Norway.(EUR 1.0 = USD 0.976)
Norwegian hydrogen solutions provider Nel ASA (OSE:NEL) has secured about USD 29 million (EUR 28.3m) in additional investment tax credits for its planned gigafactory in Michigan.
The company said that the proceed will come under the Qualifying Advanced Energy Project Tax Credit (48C) programme. With the new funds in place, the Norwegian electrolyser manufacturer has obtained almost USD 200 million in tax credits and other grants from the state of Michigan and the Department of Energy.
The amount of tax credits a fully-owned unit of Nel will receive under the 48C programme is equal to 30% of the value of qualifying investments, the company noted. The funding, the receipt of which is subject to certain conditions, follows a USD-41-million award of investment tax credits for the project last April.
When fully ramped up, the Michigan factory will have an annual nameplate capacity of 4 GW. The site will handle the production of the PEM stacks currently being developed together with General Motors, along with pressurised alkaline stacks. A final investment decision for the project has not been taken yet and its construction will depend on demand, Nel noted.
This week, the Norwegian firm announced plans to temporarily cease production at its electrolyser factory in Heroya, Norway, as part of a capacity adjustment process reflecting the slower-than-anticipated demand. The move will lead to job cuts, mostly in the Alkaline business segment in Norway.
(EUR 1.0 = USD 0.976)
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