Technology specialist Topsoe will launch a new factory to manufacture energy efficient solid oxide electrolyser cells (SOEC) for the production of clean hydrogen and derivatives like e-Ammonia and e-Methanol.
According to Topsoe, the factory’s output of electrolyser stacks will enable an annual greenhouse gas emission avoidance of up to two million tonnes of CO2 equivalent emissions.
The project received nearly $136m in federal tax credits from the Department of Energy (DOE) under the Qualifying Advanced Energy Project Credit (48C) to help the Virginia-based project accelerate US domestic clean energy.
“We are thrilled to announce our plans for a new state-of-the-art US facility that will manufacture SOEC, the key element to the world’s most efficient electrolyser technology for producing clean hydrogen,” said Roeland Baan, CEO at Topsoe.
“Through legislation like the Inflation Reduction Act (IRA), the US government is helping to accelerate the clean energy transition.”
The IRA’s clean energy incentives include many provisions for clean hydrogen and fuel cell technologies, either extending many existing federal tax credits, increasing existing federal tax credits or creating new federal tax credits.
Under this law, an estimated $369bn will be spent addressing energy security and climate change over the next ten years.
The law will see renewable electricity and clean hydrogen plants in 2023 receive a production tax credit of 2.6 cents per kilowatt hour (kWh) and up to $3 per kg of hydrogen for the first ten years of their operation.
However, the tax cuts run only through 2032, so projects that started up in 2023 will benefit from the full range of tax credits, while plants opening later will receive progressively less.
“The IRA represented a bold step towards maintaining American leadership in manufacturing, creating the next generation of clean energy jobs and combating climate change,” said US Senator Mark R. Warner.
“I’m glad to see that vision executed in Chesterfield County with the announcement of a new Topsoe manufacturing facility.”
Subject to FID, Topsoe’s more-than $400m investment is expected to create at least 150 direct jobs in Virginia and more than 1,000 indirect jobs through the value chain.
Today (19th April), the US DOE revealed the details for 35 projects across 20 states that revealed they received a share of $1.93bn from 48C under the IRA.
Eight of these projects are new electrolyser and fuel cell factories that will receive a total of $325.8m in funding. In addition to Topsoe, beneficiaries include Ballard Power Systems, Cummins Inc., Electric Hydrogen Co,. John Cockerill Hydrogen North America, Nel Hydrogen, Nuvera Fuel Cell and Twelve Benefit.
