- Companies behind 35 projects disclosed they have been selected
- Siemens, Topsoe and Nel among the beneficiaries
- Inflation Reduction Act expected to boost green investments in the US
European firms Siemens, Topsoe and Nel are among the companies that have been selected by the US’ Department of Energy (DOE) for almost USD 2 billion in green tax credits under the Inflation Reduction Act (IRA).
The DOE on Friday released details of 35 projects across 20 states that received a total of USD 1.93 billion in allocations of the Qualifying Advanced Energy Project Credit under the IRA.
The Internal Revenue Service (IRS) on 29 March allocated ~USD 4 billion of tax credits for over 100 projects across 35 states, with around 1.5 billion allocated to projects in energy.
Among the companies that voluntarily disclosed they had received funding are Germany’s Siemens, Denmark’s Topsoe and Norway’s Nel.
Topsoe, which received USD 136 million in credits, is planning a factory in Chesterfield, Virginia, that will manufacture solid oxide electrolyser cell stacks (SOEC), a key element to electrolyser technology producing green hydrogen.
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Nel disclosed its award of up to USD 41 million in tax credits for a planned electrolyser manufacturing expansion in Michigan. When fully developed, the facility in a suburb of Detroit will manufacture pressurised alkaline and PEM technologies, it said.
Siemens Energy will receive USD 18 million in credits to build its first large power transformer (LPT) manufacturing facility in the US; 80% of LPTs, which are the backbone of the US power grid, are currently made outside of the US, according to the disclosure document.
Meanwhile, Luxembourg-based multinational steel maker ArcelorMittal has been allocated credits of over USD 280 million to build an advanced manufacturing facility in Calvert, Alabama to produce non-grain oriented electrical steel (NOES), a critical material essential in electric vehicle motors and other clean energy technologies.
The launch of the IRA sparked fears in the EU that companies will relocate to the US due to a more favourable investment climate there. The EU has partly responded, for example by temporarily relaxing state aid rules for investments in clean energy.
The DOE said eight of the projects disclosed will reduce emissions at existing industrial facilities or accelerate the manufacturing of clean hydrogen and low carbon fuels, including the manufacturing of electrolysers.
The US Department of Treasury and IRS anticipate issuing guidance for the second round of the tax credit program in the coming weeks, with a submission window for required concept papers expected to open by this summer, the DOE said. - AW
Photo: Andrea Izzotti/Shutterstock
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