New California factory to manufacture green hydrogen electrolysers

Verdagy, a provider of water electrolysis electrolyzer technologies for large-scale industrial applications, announced its new facility opening in Newark, California, with more than 100,000 sq. ft. of advanced manufacturing space.

Verdagy’s Silicon Valley factory will be one of the first to manufacture advanced water electrolysers in large volumes in the United States. The commencement of operations at Verdagy’s facility will start in Q1 2024. Verdagy says it expects to double the total number of its employees by next summer to support its expansion and the operation of this new facility.

Verdagy’s customers are in heavy industries such as chemicals, ammonia/fertiliser, steel, and e-fuels which all require large amounts of green hydrogen.

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The decision to expand Verdagy’s manufacturing capabilities in California comes at a time when the state is prioritising the development of its hydrogen economy and becoming a federally funded hydrogen hub, as outlined in Governor Gavin Newsom’s Hydrogen Market Development Strategy.

Since the introduction of the Inflation Reduction Act, there has been a lack of clarity around how green hydrogen, a critical resource for reaching long-term climate goals, will qualify for the IRA’s tax incentives.

A critical issue to be determined is the phase-in of the so-called “3 Pillars” for green hydrogen production: new clean electricity capacity, feasible deliverability of that power, and hourly matching for emissions.

Even without the rules, the law launched a market for green hydrogen that was largely non-existent in the U.S. But advocates warn it could disappear just as quickly, depending on the Treasury Department’s next move.

Plug Power CEO Andy Marsh recently appeared on the Factor This! podcast to discuss this issue, where he said the U.S. could become a green hydrogen superpower, or it could squander the opportunity of a lifetime.

Originally published on Power Engineering.