Expected to cost approximately NOK260m ($25.1m) the expansion is planned to bring annual production capacity towards 500MW, with hopes of achieving capacity in 2025.

The company has said, the development of the 500MW production line will contribute to further expansion plans in the US, where Nel is developing its production concept crucial to preparing its planned gigafactory.

“With this expansion, we will increase PEM production capacity substantially and simultaneously reduce stack cost and improve stack efficiency,” said Håkon Volldal, CEO of Nel.

Nel has said the gigafactory could boast production capacity of up to 4GW, distributed between both PEM and alkaline electrolysers.

Having officially opened its automated alkaline production facility in Herøya, Norway in 2022, the planned US expansion comes are a key step in Nel industrialising its PEM platforms.

Read more: Pioneering automated electrolyser production facility officially opened by Nel in Norway

Volldal added, “We are considering three attractive alternatives in three different states and will make a final decision shortly.”

In recent months Nel has announced several purchase orders for large-scale electrolyser projects. Volldal explained, “We have ramped up production from three to five shifts, meaning that production is now running around the clock, also on the weekends.”