Nel ASA: Additional USD 29 million in tax credits for manufacturing expansion in Michigan

Rhea-AI Summary

Nel ASA has been awarded up to USD 29 million in additional investment tax credits for its planned manufacturing expansion in Michigan through the Qualifying Advanced Energy Project Tax Credit (48C) program. The tax credits, funded by the Inflation Reduction Act and managed by multiple US federal departments, represent 30% of qualifying investments and are subject to wage and apprenticeship requirements.

The company has now accumulated nearly USD 200 million in total support, including tax credits and grants from Michigan state and the Department of Energy. However, the final investment decision for the Michigan facility has not been made, and the project's execution depends on market demand.

Positive

• Secured USD 29 million in additional tax credits for Michigan expansion
• Accumulated nearly USD 200 million in total government support
• Tax credits represent 30% of qualifying investments

Negative

• Final investment decision not yet taken
• Project execution contingent on market demand

OSLO, Norway, Jan. 12, 2025 /PRNewswire/ --  A subsidiary of Nel ASA (Nel), (OSE: NEL) has been awarded up to about USD 29 million 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 Inflation Reduction Act and managed by the US Department of Energy, the US Department of Treasury, and the Internal Revenue Service. A fully owned subsidiary of Nel ASA has now secured up to about USD 29 million 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 electrolyser products," says Kathy Ayers, Vice President, Research and Development of Nel.

Accumulated, Nel has now secured close to USD 200 million 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.

For additional information, please contact:
Kjell Christian Bjørnsen, CFO, +47 917 02 097
Wilhelm Flinder, Head of Investor Relations, +47 936 11 350

About Nel ASA | www.nelhydrogen.com
Nel has a history tracing back to 1927 and is today a leading pure play hydrogen electrolyser technology company with a global presence. The company specializes in Alkaline and PEM technology for production of renewable hydrogen. Nel's product offerings are key enablers for a green hydrogen economy, making it possible to decarbonize various industries such as transportation, refining, steel, and ammonia.

This information is subject to a duty of disclosure pursuant to Section 5-12 of the Norwegian Securities Trading Act. This information was issued as inside information pursuant to the EU Market Abuse Regulation, and was published by Wilhelm Finder, Head of Investor Relations, at NEL ASA on the date and time provided.

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SOURCE NEL ASA

FAQ

How much additional tax credit did Nel ASA (NLLSY) receive for its Michigan expansion?

Nel ASA received up to USD 29 million in additional investment tax credits for its planned manufacturing expansion in Michigan through the 48C program.

What is the total amount of government support Nel ASA (NLLSY) has secured for the Michigan facility?

Nel ASA has accumulated close to USD 200 million in total support, including tax credits and grants from the state of Michigan and Department of Energy.

What percentage of qualifying investments do the tax credits represent for Nel ASA (NLLSY)?

The tax credits represent 30% of the value of qualifying investments for Nel ASA's Michigan expansion project.

What conditions must Nel ASA (NLLSY) meet to receive the tax credits?

Nel ASA must meet wage and apprenticeship requirements to receive the tax credits under the 48C program.

Has Nel ASA (NLLSY) made a final investment decision on the Michigan facility?

No, Nel ASA has not yet made a final investment decision for the Michigan facility, and the build-out depends on market demand.