Verdagy, a leader in green hydrogen electrolysis, has officially opened the first Department of Energy (DOE)-backed electrolyser manufacturing facility in the United States. The state-of-the-art factory, located in Newark, California, spans over 100,000 square feet and will play a key role in advancing the country’s green hydrogen production capabilities. This Silicon Valley-based facility is set to manufacture several gigawatts of electrolysers, marking a significant milestone in the effort to decarbonise industries that are traditionally challenging to abate.
The new facility’s opening signals Verdagy’s ambition to scale up its green hydrogen operations rapidly and efficiently. With a focus on reducing production costs and increasing output, the company is positioning itself as a pivotal player in the transition to renewable energy. The factory has been designed to support the production of Advanced Alkaline Water Electrolysis (AWE) technology, enabling mass production at a reduced cost.
Streamlined Production Strategy
Peter Cousins, Verdagy’s Chief Operating Officer, emphasised the company’s focus on scalable and cost-effective production. “With our deep experience in utility-scale solar and automotive battery manufacturing, we knew that scaling from the outset was critical. This understanding shaped our approach to green hydrogen electrolyser manufacturing, which we developed with our partner ATI.”
Verdagy has collaborated with ATI, Inc., a leading US-based metals supplier, to optimise its manufacturing process. The “Coils-to-Cells” system they have developed integrates ATI’s metal alloys into the production process, transforming metal coils into finished electrolyser cells through automated manufacturing lines. This innovative production method reduces manual handling, cuts costs, and streamlines the entire process.
ATI’s President of Specialty Rolled Products, Tom DeLuca, praised the partnership, noting, “Our high-quality materials are ideally suited to the energy sector, and Verdagy’s manufacturing process is an excellent fit for what we offer.”
Cutting Costs and Increasing Capacity
Verdagy’s approach is geared towards reducing electrolyser stack costs and improving overall manufacturing efficiency. Through automation and the use of advanced materials, the company claims it can produce gigawatts of electrolysers at a cost five times lower than competitors. This cost advantage allows Verdagy to scale production significantly while maintaining financial prudence.
Furthermore, Verdagy’s manufacturing strategy includes flexibility, enabling the company to adjust its production roadmap quickly as the market evolves, without being tied to legacy business models. This agility provides a competitive edge in the fast-moving renewable energy sector.
Supporting Domestic Supply Chains
The partnership with ATI and the “Coils-to-Cells” manufacturing system aligns with the DOE’s goal of fostering domestic electrolyser production, supported by US-made metals. This focus on local supply chains is expected to create a ripple effect throughout the industry, encouraging further domestic production and reducing reliance on imports.
The factory will also bring new clean-tech jobs to the Newark community, contributing to the local economy and advancing the broader goal of building a robust green energy workforce.
A Green Hydrogen Milestone
Announced in 2023, Verdagy’s gigawatt-scale factory was awarded a $39.6 million DOE grant in March 2024. The funding aims to accelerate the mass production of the company’s Advanced Alkaline Water Electrolysers. High-volume production at the factory is slated to begin in early 2025, a crucial step towards making green hydrogen more accessible and cost-effective.
With the launch of this facility, Verdagy is poised to play a central role in the US’s green hydrogen future, helping to decarbonise key industries and contribute to the country’s renewable energy goals.
