Warner, Kaine, and McClellan Statement on Topsoe Coming to Chesterfield

WASHINGTON - Today, U.S. Senators Mark R. Warner and Tim Kaine and U.S. Representative Jennifer McClellan released the following statement after Topsoe announced it will build a new manufacturing facility in Chesterfield County, Virginia thanks to nearly $136 million in tax credits from the Inflation Reduction Act (IRA), which the lawmakers championed in 2022. Topsoe is a Danish company that manufactures solid oxide electrolyzer cells (SOEC), a crucial component for producing clean hydrogen. The project is expected to bring more than $400 million in investments and create at least 150 new jobs in Virginia. Warner, Kaine, and McClellan wrote a letter to the U.S. Department of Energy (DOE) to advocate for the project's application.

"The Inflation Reduction Act represented a bold step towards maintaining American leadership in manufacturing, creating the next generation of clean energy jobs, and combatting climate change," said Warner. "I'm glad to see that vision executed in Chesterfield County with the announcement of a new Topsoe manufacturing facility. Thanks to tax credits from this landmark law, Virginia will continue to power our nation and lead the clean energy transition by creating good-paying manufacturing jobs across the Commonwealth."

"I'm thrilled that Topsoe will be setting up a state-of-the-art facility in Chesterfield County to help manufacture clean energy components," said Kaine. "This wouldn't have been possible without the investments we made in the Inflation Reduction Act, which I was proud to have helped pass in the Senate by one vote. I look forward to seeing how this project will boost economic growth, create jobs, and help us build a clean energy future."

"This new Topsoe facility in Chesterfield County will create hundreds of new jobs and stimulate millions of dollars in economic activity right here in Virginia's Fourth," said McClellan. "I will continue fighting with Senators Warner and Kaine to supercharge our transition to a clean-energy future and bring federal investments to our Commonwealth."

"We are thrilled to announce our plans for a new state-of the art US facility that will manufacture Solid Oxide Electrolyzer Cell stacks (SOEC), the key element to the world's most efficient electrolyzer technology for producing clean hydrogen," said Roeland Baan, CEO of Topsoe. "Through legislation like the Inflation Reduction Act and strong support from individual states such as Virginia, the US government is helping to accelerate the clean energy transition. With our strong dedication to innovation, we will help the US achieve its goals of driving down the cost of clean hydrogen and delivering clean energy jobs."

The IRA included a number of provisions and tax credits to incentivize investments in clean energy. Topsoe received a tax credit through the DOE's Advanced Energy Project Credit (48C) program, which was expanded as part of the IRA. The 48C tax credit covers 30 percent of the amount invested in new or upgraded facilities that build renewable energy components. The IRA included a set-aside in the 48C program for coal communities, which Chesterfield qualified for due to the retirement of a nearby coal-fired electric generating unit.

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