How German hydrogen co. Thyssenkrupp Nucera is growing in Houston
July 2, 2024
An international electrolyzer company is looking to Houston as a prime location to build out its hydrogen business.
Germany-based Thyssenkrupp Nucera, which is a supporting partner of the HyVelocity Hydrogen Hub, established its Houston office in 2021 and is preparing for the local hydrogen ecosystem to grow.
“I think Houston is a very attractive location for setting up an office, particularly in this industry, because it is one of the locations with quite significant [renewable energy] sources, which is, of course, a prerequisite to building up green value chains in the country,” CEO Werner Ponikwar told the Houston Business Journal at the Hydrogen Technology Expo North America in Houston.
“We are currently really at an inflection point for the entire green hydrogen, low-carbon and hydrogen industry, and it's super exciting to be part of that.”
Thyssenkrupp Nucera began developing specialized hydrogen electrolyzers about six years ago after six decades of electrolyzer expertise for the chemical industry.
When the company opened an office in Houston in 2021, it had around five people working in it. Since then, it initially grew to 15 people and now has 60 employees.
“We have ramped up [the Houston office] very significantly to be able to cope with the emerging growth that we see here in the market when it comes to low-carbon hydrogen,” Ponikwar said.
The company is already seeing business along the Gulf Coast, with a 20-megawatt electrolyzer contracted for Illinois-based CF Industries Holdings Inc. (NYSE: CF) ammonia complex in Donaldsonville, Louisiana. The electrolyzer will use power from renewable energy sources to produce “green” ammonia rather than “blue” ammonia, which the complex also produces.
Spring-based Exxon Mobil Corp. (NYSE: XOM) also has a partnership with CF Industries’ Donaldsonville plant, with plans to capture the carbon dioxide from the company’s blue hydrogen, which is produced from natural gas.
“The aim is to have a team that is capable of executing big projects here in the U.S. independently, and that will certainly require more than 60 people,” Ponikwar said.
Thyssenkrupp Nucera was also encouraged to continue building out hydrogen in the Houston area after it received a $50 million grant from the Department of Energy to mass-produce its 20-megawatt electrolyzers in the U.S. for the U.S. market.
Thyssenkrupp Nucera is a joint venture between German steel conglomerate Thyssenkrupp AG and Italian electrochemical company Industrie De Nora SPA. It currently has more than 3 gigawatts of electrolyzer capacity contracted around the world as it grows in the U.S.
“The U.S. is one of the regions in the world that is currently taking off because of hydrogen right now. We certainly want to contribute here and be one of the key players,” Ponikwar said.
Hydrogen in the Houston area specifically has been growing, particularly with international companies entering the country and region.
John Cockerill Hydrogen, a subsidiary of Belgium-based John Cockerill, has delivered 1,300 electrolyzers globally and is looking to expand into the U.S. with its new plant in Baytown, which is slated to produce a gigawatt of electrolyzers per year. The company expects to begin production at the plant in the third quarter of 2024 at the earliest.
John Cockerill Hydrogen said the plant will be among the first operational alkaline manufacturing facilities of its size in the U.S. Houston-based Schlumberger Ltd. (NYSE: SLB) is a lead investor and partner in the company.
Earlier this month, France-based Air Liquide Group announced plans to invest $850 million into Exxon’s massive clean hydrogen and ammonia plant in Baytown.