A subsidiary of Nel ASA has been awarded up to about $29 MM in additional investment tax credits for its planned manufacturing expansion in Michigan as part of the Qualifying Advanced Energy Project Tax Credit (48C) program.

The 48C program is funded by the U.S. Inflation Reduction Act (IRA) and managed by the U.S. Department of Energy, the U.S. Department of Treasury, and the Internal Revenue Service. A fully owned subsidiary of Nel ASA has now secured up to about $29 MM in additional tax credits, equivalent to 30% of the value of qualifying investments. Receipt is subject to conditions, such as wage and apprenticeship requirements.

“Nel has a long history of investing in R&D and commercializing advancements co-supported by federal funding, creating confidence in Nel’s ability to manufacture and deliver products to the field. Nel appreciates this continued support from Department of Energy in scaling up manufacturing capability of our advanced electrolyzer products,” said Kathy Ayers, Vice President, Research and Development of Nel.

Accumulated, Nel has now secured close to $200 MM in support in both tax credits and other grants from the state of Michigan and Department of Energy. Final investment decision for the Michigan facility is not yet taken, and the build out of the site depends on demand.