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Dive brief:
- Automation machinery maker ABB and construction company Fluor are teaming up with Topsoe to build a more than $400 million electrolyzer factory in Chesterfield County, Virginia, the companies announced in a press release set of June 19.
- The Topsoe factory will make solid oxide electrolysis cells, or e-fuels, which are used to produce clean hydrogen. It will also create 150 jobs.
- Together, the three companies will design a concept to build the factory and create processes to reduce costs and improve safety. Operations are expected to begin in 2028.
Diving knowledge:
Topsoe is currently in the midst of building its first e-fuel facility near its headquarters in Herning, Denmark, which will open later this year. The experience informed Topsoe’s decision to partner with ABB and Fluor, hoping to build the Virginia plant more efficiently, according to the news release.
“Advancing the energy transition at any acceptable pace and scale will require collaboration and balance between existing and new technologies, driven by formal partnerships that span the entire energy value chain,” said ABB Energy Industries President Brandon Spencer in a statement on June 16.
The joint deal is just one of the ways chemical manufacturer Topsoe has worked to secure its new electrolyzer factory. In March, the Department of Energy awarded Topsoe $135.9 million in 48C tax credits.
DOE also requires manufacturing awardees to participate in workforce development and apprenticeship programs. Last month, Denmark-based Topsoe announced plans to award five $10,000 scholarships to high school students in Chesterfield County, Virginia, who are pursuing a STEM-related career.
Across the country, green hydrogen projects are expanding rapidly. If current announced projects are completed, annual production of low-emission hydrogen could reach 38 metric tons by 2030, a 50% increase from the figure projected by 2022, according to the International Energy Agency. Other announced projects include a green hydrogen factory by Verdagy, which is building a facility in Silicon Valley.