Nel has extended and automated the manufacturing of its PEM hydrogen electrolysers at its Wallingford facility in Connecticut, US.

Opened by Democratic Senator, Richard Blumenthal, the site’s annual capacity has been increased from 50 to 500MW, which the Norwegian original equipment manufacturer (OEM) has said will reduce the cost of its electrolysers by 30%.

Paul Lavoie, Nel’s Chief Manufacturing Officer at the Connecticut facility, said, “Automating production facilities is the only way you are going to be able to compete on a global level.”

Håkon Volldal, President and CEO of Nel, added that high costs still plague the hydrogen industry, stressing the need to reduce costs to drive adoption.

Having partnered with General Motors (GM) in 2022 to industrialise its PEM platform, Volldal, said, “Developing next-generation PEM electrolysers with our technology partner GM, we aim to cut costs by another 60% and reduce energy consumption by more than 10%.”

The Wallingford factory comes as just one part of Nel’s US manufacturing expansion.

It currently plans to build a 4GW factory in Plymouth, Michigan, which will have its capacity split between PEM and alkaline.

Having secured $50m in funding from the Department of Energy (DOE) through the Bipartisan Infrastructure Law (BIL), $25m from the State of Michigan, as well as $40.9m from the Inflation Reduction Act (IRA), the facility is expected to cost $400m.

Read more:Nel to establish 4GW electrolyser production plant in Michigan