Nel Hydrogen Expands and Upgrades Manufacturing Facility in Wallingford
Key Ideas
- Nel Hydrogen in Wallingford, Connecticut, completed a $30 million upgrade to its electrolyzer manufacturing facility, increasing productivity and efficiency.
- The upgrade included automation to produce electrolyzers for hydrogen production at a lower cost, aiming to reduce the need for government subsidies in the future.
- The company's clean hydrogen can be used for various applications like powering machines, vehicles, and electricity generation.
- The facility's automation led to a $4.9 million federal grant, additional job creation, and recognition of Connecticut as a hub for renewable energy production.
Nel Hydrogen, a leading manufacturer of clean hydrogen energy systems, recently finished a significant upgrade to its electrolyzer manufacturing facility in Wallingford, Connecticut. The $30 million investment resulted in a more efficient and productive operation, with increased automation allowing for a 30% reduction in production costs. The company aims to make hydrogen more cost-effective to reduce reliance on government subsidies. The electrolyzers produced by Nel are crucial for splitting water into hydrogen and oxygen, used for various purposes such as powering machinery, vehicles, and generating electricity.
The facility expansion included converting office space into an 8,100 square foot addition, enhancing the existing 51,800 square foot production floor. By securing a $4.9 million grant from the U.S. Department of Energy, Nel aims to further drive down the cost of producing clean hydrogen. The company's commitment to automation not only increased efficiency but also led to the creation of additional jobs. Nel Hydrogen's efforts have positioned Connecticut as a global hub for renewable energy production.
The automation strategy implemented by Nel is not about replacing jobs but rather upskilling employees for more fulfilling roles. By adding automation, the company was able to create more rewarding work opportunities, leading to the addition of around two dozen employees in the past two years. Nel's focus on innovation and sustainability was further highlighted by its acquisition of the Technology Drive production facility in 2017. With clients mainly from heavy industries like steel and glass manufacturing, Nel Hydrogen continues to drive advancements in clean energy production and contribute to a more sustainable future.