HEC has announced the first phase of a three-phase project to build a 140,000-square-foot factory.

In this first phase, three interconnected buildings will be constructed, to increase manufacturing, testing and office space.

The testing building will have unique features to provide a safe environment for the use of hydrogen fuel inside the building. The company expects to be able to occupy the production building before January.

"We are pleased to expand our presence in Algona, whose people have been so supportive of our work," said Ted Hollinger, founder and president of HEC and former director of engineering at Ford.

"The city's help, as well as that of Kossuth County and the state of Iowa, have enabled us to take this step of increasing production capability well before we might otherwise have been able to do so," he said.

HEC manufactures and modifies ultra-low-emission engines for industrial use.  These engines may be fueled by hydrogen, natural gas, liquid propane, and gasoline.