Topsoe's $400 Million Investment

Topsoe, a Danish energy company, plans to build a Electrolyzer facility in Chesterfield, Virginia. The massive project utilizes renewable electricity from sources like solar and wind power technology, which results in green hydrogen, a form of clean and carbon-neutral fuel. The facility is designed for industrial-scale production, and will further support the growing demand for clean hydrogen.

Topsoe’s investment in American manufacturing coincided with the launch of the National Institute of Standards and Technology (NIST) Manufacturing Extension Partnership (MEP) National Network’s Supply Chain Optimization and Intelligence Network (SCOIN) in June 2023. This two-year pilot program, authorized by the CHIPS and Science Act of 2022, allocated $20 million to MEP Centers like Manufacture Nevada across the U.S. and Puerto Rico. The initiative aims to broaden the Network’s scope from working with individual companies to addressing entire manufacturing supply chains.

Mapping Capabilities and Building a Supplier Network

Topsoe’s investment focuses on manufacturing new solid oxide electrolysis cells (SOEC). As there are no turnkey products or existing supply chains for this technology, the initial scouting focused on manufacturers’ capabilities rather than specific components. Early communications about this opportunity were sent to all 51 local MEP Centers through the supplier scouting service, resulting in a pool of 12,000 potential suppliers nationwide. This pool was narrowed down to 300 prospective companies from 38 states based on criteria like capacity, specific capabilities, and certifications.

By September 2023, Topsoe had identified itself as the company interested in building the facility, and the Oklahoma Manufacturing Alliance, along with TMAC, the Texas MEP Center, began the initial supplier scouting work.

Topsoe's Selection Process and Site Visits

Topsoe selected 35 companies from 14 states to apply for the request for quotation (RFQ) stage. These companies were invited to a summit in Houston to learn more about the opportunity, with all 35 advancing to the RFQ stage due to the thorough vetting process by the MEP National Network.

Topsoe is currently conducting site visits to these 35 suppliers in coordination with local MEP Center staff to assess operations, capabilities, and constraints. MEP representatives evaluate supplier readiness (including certifications and automation) and offer services to fill gaps and enhance supplier value.

Expanding Nevada's Manufacturing Horizons

Here in Nevada, the opportunities for our local manufacturing ecosystem are immense. As a NIST MEP affiliate, our team at Manufacture Nevada has the tools and resources to leverage the supply chain network. The Topsoe initiative serves as a perfect scenario for implementing SCOIN at scale, closely aligning with its major goals:

• Mapping capabilities and interconnections within supply chains.
• Enhancing supplier scouting services to help organizations source domestic products.
• Reducing supply chain vulnerabilities and strengthening regional manufacturing ecosystems.
• Connecting original equipment manufacturers (OEMs) with small and medium-sized manufacturers.

Where Manufacture Nevada Can Help

The support provided to Topsoe highlights how the MEP National Network can help build a supply chain from early stages of project implementation. This initiative demonstrates the significant capabilities which local MEP centers like ours can help to bridge supply chain gaps.

Contact our Business Advisors if you're interested in exploring supplier scouting opportunities. We are here to support and strengthen our State's manufacturing industry by assisting small and medium-sized manufacturers.

Content from this blog is sourced from the NIST MEP Website.