John Cockerill Hydrogen awarded $34 million in tax credit for the Baytown Gigafactory Project

April 25th 2024

John Cockerill Hydrogen North America has been awarded $34 million in tax credit by the U.S. Department of Energy (DOE) through the 48C Program, a qualifying advanced energy project credit from the Inflation Reduction Act of 2022. The 48C Program aims to strengthen U.S. industrial competitiveness and clean energy supply chains.

During the highly-competitive application process, nearly $42 billion in funding requests was submitted for an allocation of just $4 billion. John Cockerill was among the less than 10% of applicants selected to receive 30% in tax credit for investments.

The allocation will support John Cockerill’s qualified investment in equipment CAPEX and activities related to the installation of the equipment at its first North American Gigafactory in Baytown, Texas.

Baytown facility is located in a census tract meeting the fossil fuel employment threshold and has an unemployment rate above the national average. The project will provide around two hundred direct jobs and several hundred indirect jobs in target communities.

“We’re grateful to the Baytown community and Houston stakeholders for their unwavering support and we look forward to becoming an integral part of the local community“, said Nicolas de Coignac, CEO of John Cockerill Hydrogen North America.

In October 2023, John Cockerill announced its US entry on the hydrogen market with the acquisition of this brownfield factory in Baytown. The facility is expected to produce 1GW per year of pressurized alkaline electrolyzers and bolstering Houston’s position as a hydrogen hub.

“I would like to thank the U.S. Department of Energy for their invaluable support. This recognition underscores the credibility and significance of our project in strengthening the hydrogen supply chain, particularly through domestic manufacturing of electrolyzers. Addressing this critical element is essential for building a sustainable hydrogen economy. With this support, we’re positioned to accelerate the deployment of clean hydrogen, driving towards a more sustainable future while actively contributing to the scale-up of domestic electrolyzer manufacturing”, concluded Nicolas de Coignac.

 

The John Cockerill Group, which is privately owned, has been present in the United States since 2005 and employs 6,000 people worldwide, including more than 100 in North America. John Cockerill Group achieved a turnover of $ 1,11 billion in 2022 in 24 countries, on 5 continents. With decades of experience in hydrogen technologies, John Cockerill Hydrogen is a world leading electrolyzer manufacturer with a broad offering from power source to gas separation, purification, and balance of plant. The company designs, builds and maintains pressurized alkaline electrolyzers and has delivered more than 80 stacks of 5MW since 2018, including the world’s two largest projects (100+ MW) in operation today. Through its existing manufacturing footprint and its planned global capacity ramp-up, John Cockerill Hydrogen is uniquely positioned to lead the fast-growing green hydrogen production market with specific focus on industrial-scale and utility-scale projects. John Cockerill Hydrogen North America was established in 2022 to serve the North American market with domestic electrolyzer production and local customer services.