Electric Hydrogen (EH2) has been awarded an $18.3m tax credit from the Inflation Reduction Act’s (IRA) 48C initiative for its 1.2GW PEM electrolyser factory.
Set for construction in Devens, Massachusetts, the factory is planned to use “proven” manufacturing frameworks for successfully scale industries, running with low-cost and high throughput production lines.
Backed by the likes of Bill Gates’ Breakthrough Energy, Microsoft, Amazon, Equinor and more, EH2 is aiming to deliver fully integrated 100MW electrolyser plants to produce the “lowest cost green hydrogen on Earth.”
EH2 expects the first Devens-produced electrolyser stacks will be shipped later this year (2024) to a customer project in southeast Texas.
Last September (2023), the firm entered into a definitive supply agreement to supply a 100MW system to New Fortress Energy’s (NFE) 50 tonne-per-day green hydrogen project in Texas, which expects to produce its first hydrogen in Q4 2024.
Read more: Large-scale Texas green hydrogen project to utilise EH2’s 100MW electrolyser system
The 48C Qualifying Advanced Energy Project initiative was expanded with a $10bn investment from the IRA, aimed at creating jobs, reducing air pollutants and greenhouse gases (GHGs) and supporting technologies for commercial deployment.
Jigish Trivedi, Senior Vice-President of Manufacturing at Electric Hydrogen, said the funding approved by the Department of Energy (DOE), Treasury and Internal Revenue Service (IRS), will allow the firm to increase its rate of production.
Last month (March 2024), Trinity Capital committed $50m in equipment financing to support the Devens gigafactory.
Read more: EH2 raises an additional $50m in financing to support 1.2GW factory
Just days ago, AES Corporation signed a reservation agreement with EH2 for 1GW worth of the electrolyser systems.
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