Brice Wallace
Business Journal
A North Salt Lake company focused on sustainable energy solutions will get state help in its effort to expand to full-scale manufacturing of industrial systems producing fuel and chemicals.
OxEon Energy LLC plans to add 103 high-paying jobs in a nearly $100 million project over six years. The company was approved for a tax credit incentive of $1.4 million over six years by the Governor’s Office of Economic Opportunity board, at the board’s January meeting.
OxEon has been focused on solid oxide technology, developing technologies capable of decarbonization. Its technology suite converts carbon dioxide and water into sustainable fuels and chemicals. One milestone was extracting oxygen on Mars as part of NASA’s Perseverance rover mission.
Now, with $36.3 million in funding from the U.S. Department of Energy and about $60 million through fundraising, the company aims to manufacture a solid oxide stack, a device of advanced ceramic materials that allows the separation of oxygen from water and carbon dioxide. The scale-up of the North Salt Lake pilot manufacturing facility would transform the company from small demonstration projects to large-scale industrial systems producing fuel and chemicals.
“This nearly $100 million project will take OxEon from research, development and demonstration efforts to outright manufacturing with over 100 times the manufacturing capacity of our current operations,” Jessica Elwell, the company’s chief operating officer, told the GOEO board.
The goal is for the company to boost production to meet the growing demand for sustainable fuels. The scale-up in North Salt Lake could portend the establishment of other full-scale manufacturing facilities.
Elwell said the project could pave the way for the company’s first gigawatt manufacturing facility “and aligns not only with the state’s strategic goals of economic growth and stability, but adds to Utah’s booming target industries of aerospace and defense as well as advanced manufacturing.”
Utah, she said, “offers a unique combination of skilled professionals, supportive business environments, and access to critical infrastructure, making it the perfect place to scale our efforts in advancing sustainable energy solutions.”
“This is an exciting company,” North Salt Lake City Manager Ken Leetham told the GOEO board. “We couldn’t be more supportive. …”
“We 100 percent support OxEon and their expansion,” added Chanel Flores, Davis County’s economic development director. “They are an awesome organization and they really have become almost like our poster company when it comes to getting funding from our Davis loan fund.
“We’re excited about this [project]. It meets one of our targeted industries. They’re bringing, high-paying jobs … and we 100 percent support OxEon and this expansion.”
The project is expected to generate new total wages of about $40.2 million over six years, with the new jobs paying an average of $84,960. New state tax revenue is projected at nearly $6 million during that time. The state incentive is part of the Economic Development Tax Increment Financing (EDTIF) program.
“Utah is committed to advancing clean energy solutions and creating jobs that fuel economic growth,” Ryan Starks, GOEO’s executive director, said in a prepared statement. “This incentive helps build a more sustainable future by supporting companies like OxEon as they develop groundbreaking technologies to shape the future of energy.”
“OxEon’s growth is a testament to the remarkable energy innovation happening right here in Utah,” said Scott Cuthbertson, president of the Economic Development Corporation of Utah. “This project showcases our commitment to fostering the success of local companies and highlights the potential for groundbreaking innovation within our communities. EDCUtah will continue to champion initiatives that support the growth of Utah-based businesses and strengthen our state’s economy.”
GOEO does not provide upfront cash incentives. Each year that an incentivized company meets the obligations in its contract with the state, it will qualify to receive a portion of the new, additional state taxes the company paid to the state.