Plan for $400 million Plymouth plant postponed
One of the key components of the Michigan International Technology Center will not be bringing a planned $400 million plant to the area anytime soon.
Plans by Nel Hydrogen, headquartered in Oslo, Norway, to build a gigafactory on former prison property shared by Plymouth and Northville townships are on hold due to “uncertainty in the U.S. policy landscape and hydrogen demand” according to the recently released 2024 annual company report. Plans for the factory were announced in 2023.
The company manufactures electrolyzers for green hydrogen production and hydrogen fueling equipment.
The company received $170 million in incentives, including tax credits, grants and cash to bring the new 507,000-square-foot facility, planned for 15000 Ridge Road, to Plymouth Township. The project was predicted to create more than 500 jobs at the new plant.
Nel Hydrogen had received $75 million in cash incentives and grants from the U.S. Department of Energy and the State of Michigan, as well as up to $41 million in investment tax credits through the Qualifying Advanced Energy Project Tax Credit (48C) program.
“At this stage, no final investment decision has been made,” Wilhelm Flinder, head of investor relations, communications, and marketing at Nel Hydrogen said. “While the United States is a highly promising market for us—given its significant potential for renewable hydrogen—establishing a large-scale facility requires clear, sustained market demand, driven by a supportive policy framework for our clients as well. Support for the Nel factory alone is unfortunately insufficient if there is limited demand for the equipment produced.”
MITC planner and coordinator Gary Roberts noted the significant incentives already committed to the project.
“The state and the feds and the Department of Energy and everybody has thrown everything but the kitchen sink at them,” Roberts said during a recent presentation about various MITC projects. The Michigan Economic Development Corporation (MEDC) said the organization is maintaining communication with Nel Hydrogen.
“MDEC remains engaged with Nel Hydrogen on their plans for a manufacturing facility in the state,” spokesperson Otie McKinley said.
