State manufacturing looking to add 45 jobs
A Wallingford manufacturer that makes equipment used to produce hydrogen is going to spend $25 million to expand and upgrade the production capability at its Technology Lane facility, a move that will result in the hiring as many as 45 new employees over the next two years
Nel ASA, a Norwegian company that makes fuel cells, is converting what used to be office space into an 8,100 square foot addition to the company’s existing 51,800 square foot production floor, said Tushar Ghuwalewala, the vice president of operations for the company. Ghuwalewala said the company is looking to expand production of the equipment that is used to produce hydrogen.
The company’s technology uses electrolysers to create hydrogen gas. The process takes water and splits it into oxygen and hydrogen.
The $25 million investment will be used to automate some aspects of manufacturing the equipment, which he said will allow the company to increase by tenfold the number of units the Wallingford facility can produce. The improvements and new hires associated with the increased production capacity are expected to allow Nel to achieve that goal by 2025.
“We’re not completely automating the production process,” Ghuwalewala said. “But the equipment we’re purchasing is to increase capacity to allow us to achieve our goals.”
Lars Nermoen, Nel’s head of communications said approximately 20 new employees will be hired for the Wallingford facility this year and about 25 in 2025. The company currently has about 130 employees in Wallingford.
Ghuwalewala said company officials believe that the federal Inflation Reduction Act “is going to increase demand for hydrogen, which will increase demand for our products.” Two of the key elements in the act, which became law last year, involve investing heavily in domestic energy production and clean energy.
Hydrogen fuel cells are used to produce electricity through a combination of hydrogen and oxygen atoms, according to the U.S. Energy Information Administration. Hydrogen reacts with oxygen across an electrochemical cell that is similar to a battery in order to produce electricity, water, and small amounts of heat.
As production of Nel’s equipment is increased, the Wallingford facility will need more space to store the materials used in the manufacturing process. according to Ghuwalewala. To that end, the company is look to erect a storage facility that he described as “similar to a quonset hut” next to its existing facility.
One of the key differences between Nel’s technology and the traditional way of making hydrogen is the the company’s process makes no pollution. Once the hydrogen is extracted from the water, the oxygen is released into the air.
Nel began operating in Wallingford in February 2017 when the Norwegian company acquired Proton Onsite for $70 million.
In addition to expanding production capacity in Wallingford, Ghuwalewala said the company is looking to build a new production facility. Nel officials are looking at sites fin three states and a decision will be made shortly, Hakon Volldal, the company’s chief executive officer, said in a statement.
When asked if Connecticut was one of the states being considered for the new factory, Ghuwalewala said he was not able to discuss the search process.