Electrolyser manufacturer Cummins is to build its first electrolyser factory in the US, becoming the latest green hydrogen player to turn its attention to the burgeoning American market.
The 500MW facility, to be located at Cummins’ existing diesel generator factory in Minnesota, can be scaled to 1GW, the company said, citing the favourable regulatory and political conditions in the US as the reason for the investment decision.
“This is a reflection of increasing government support through the Inflation Reduction Act, hydrogen hubs and a blossoming hydrogen economy in the States,” said Alexey Ustinov, vice president of electrolysers at the company.
The announcement comes less than two months after President Biden’s game-changing Inflation Reduction Act, which introduced a maximum $3/kg tax credit for green hydrogen producers, making it competitive with grey hydrogen made with fossil gas.
Norwegian electrolyser manufacturer Nel recently took the decision to scale up its operations to reflect anticipated demand in the US market — including opening a US office — while Danish manufacturer Topsoe recently told Recharge that its clients are increasingly US-based.
The Department of Energy has set a goal of reducing the cost of green hydrogen to $1/kg by 2031, as well as setting a target for the US to produce 50 million tonnes of clean hydrogen (defined as hydrogen produced with an energy intensity of 4kg of CO2e per kg of H2) annually by 2050, with interim targets of 10 million tonnes and 20 million tonnes by 2030 and 2040 respectively.
The administration has also pledged $8bn in federal cash to develop at least four regional hydrogen hubs.
'Growing demand'
“Expanding our electrolyser capabilities to Minnesota is Cummins’ first step in enhancing our ability to serve North American customers and meet growing demand for large-scale electrolysis projects globally,” said Alex Savelli, Cummins’ managing director of electrolysers – Americas.
Cummins will initially use the facility to build its proton exchange membrane (PEM) technology, with the potential to deliver other technologies in future.
“The company continues to evaluate new opportunities to grow in North America that will enable us to extend our electrolyser product range and manufacture next-generation technologies for larger, more demanding applications,” Savelli added.
Cummins is already planning to scale up its Belgian electrolyser factory to 1GW, after securing cash from a €5.4bn ($5.3bn) state aid fund sanctioned by the EU. Cummins has also added capacity at its Canadian plant and is building two new electrolyser factories in Spain and China, each starting at 500MW of manufacturing capacity and scalable to 1GW.
