State OKs $2M for GM, Honda fuel cell operation

Lansing — General Motors Co. and Honda Motor Co. are moving forward with their joint-venture fuel cell operation slated for Brownstown Township, six years after the companies first announced their plans to create an industry-first fuel cell manufacturing operation in Michigan.

On Tuesday, the Michigan Economic Development Corp.’s Michigan Strategic Fund board awarded a $2 million state grant for the $48.9 million project that could create up to 70 total new jobs. The MSF board in 2017 approved a $2 million grant but the companies weren’t able to meet certain timing requirements to receive it, according to the MEDC.

Candace Butler, GM’s global manager of economic development, said Tuesday the project is “active” and “progressing well” and would benefit from the reauthorization of the grants.

“Technology is changing like crazy,” Butler said. “We see fuel cells as a critical part of our all-electric future and a great pathway for industries and applications that traditionally rely on diesel to meet their energy goals.

An MEDC memo on the project noted there were project delays and pandemic difficulties that caused a longer-than-expected period for finalizing the agreement.

“The company could not execute the agreement by the expiration of the authorization period and has requested additional time to execute the agreement,” the memo said. “It is anticipated the Company will be in a position to execute the agreement within the allotted reauthorization timeline.

GM and Honda’s Fuel Cell System Manufacturing LLC operation is located within GM’s existing battery pack manufacturing facility site in Brownstown Township in Downriver Wayne County.

GM previously expected to begin production of fuel cell systems around 2020 when the pandemic hit.

Proponents of fuel cells argue they’re another way to a zero-emissions future. They offer an alternative to heavy electric vehicle batteries that take long to charge.

The Detroit automaker has been growing its Hydrotec fuel cell business for the last couple of years. In 2021, Hydrotec said its fuel cells would be used on a fleet of Navistar Inc. manufactured trucks. Wabtec Corp. then announced it would use fuel cell systems in its locomotives and Hydrotec signed a joint development agreement with Liebherr-Aerospace to work on a hydrogen fuel cell-based electrical power generation system for aircraft.

Last year, The Detroit News visited Hydrotec’s lab to see the company work toward commercializing the technology.