Nikkiso to double European manufacturing capacity with site expansion

Nikkiso Clean Energy & Industrial Gases will almost double its European manufacturing capacity with the expansion of its operations in Saxony, Germany.

The work will see the group grow its carbon capture business and also present new manufacturing capabilities for cryogenic pump assembly, heat exchangers, and hydrogen fuelling skids.

Nikkiso hopes to achieve around 20% growth in the near term with further growth expected in the longer term with the planned development.

Peter Wagner, Executive Chairman of Nikkiso CE&IG Board, said, “Nikkiso is investing to meet clean energy market demand and growing our operations in Germany because of increasingly favourable market conditions for low-carbon energy solutions.”

Nikkiso hopes to complete the expansion in the first half of 2025. Facility operations are and will continue to be fully powered by renewable solar energy during the project.

With the expansion, Nikkiso hopes to better meet demands for cryogenic equipment and plant solutions used in clean energy projects such as hydrogen fuelling stations, liquefied natural gas (LNG) and ammonia terminals, and hydrogen production plants.

The Prime Minister of Saxony, Michael Kretschmer, said the expansion shows how attractive Saxony is as a business location for international investors, with Nikkiso being formed in California.

He continued, “With this decision, Nikkiso will become an important part of the hydrogen economy that we in Saxony want to rely on in the coming decades. I am delighted that together we are strengthening this cooperation in the director of clean energy and innovation.”

 In May 2021, the Saxony’s state government adopted a hydrogen strategy with a goal to develop an electrolysis capacity of 1,000MW by 2030. To achieve this, the German state needs additional wind and solar energy facilities with a power output of 5,000MW.

From 2040 onward, Saxony-Anhalt plans to cover its hydrogen requirements from its own resources. The hydrogen will be produced in large industrial plants that are connected to national and international grids.