Nel ASA Achieves Monumental Milestone with Purchase Order
Nel Hydrogen, the US subsidiary of Nel ASA (OSE: NEL), has recently achieved a remarkable milestone by securing a firm purchase order with Kaupanes Hydrogen AS and HyFuel AS. This important contract, valued at over USD 50 million, represents one of the largest orders in the history of Nel, specifically for its containerized PEM (Proton Exchange Membrane) systems.
Project Overview and Collaboration
The projects, each boasting a capacity of 20 MW, are rooted in advanced technology that emphasizes efficiency and sustainability. Developed collaboratively by Hydrogen Solutions AS, both projects are set to significantly enhance green hydrogen production in Norway. The combined capacity of these projects will amount to 40 MW, a substantial contribution to the renewable energy landscape.
The HyFuel Initiative
Located at the offshore supply base in Kinn municipality, the HyFuel hydrogen production facility is a partnership between HYDS, Sogn og Fjordane Energi AS, and Fjord Base Holding AS. This ambitious initiative has also secured NOK 180 million in funding support from Enova, showcasing a strong commitment to promoting green energy solutions.
The Kaupanes Project
Mirroring the HyFuel endeavor, the Kaupanes project, set in the industrial area of Eigersund municipality, is a collaborative effort involving HYDS, Dalane Energi AS, and Eigersund Næring og Havn KF. This project has garnered NOK 206 million in support from Enova, underscoring the vital role of governmental backing in advancing the green hydrogen sector.
Nel ASA's Role and Contribution
Nel is excited about this firm order, as expressed by Håkon Volldal, the President and CEO of Nel. The company is eager to collaborate with experienced developers like HYDS to elevate the green hydrogen market in Norway and the broader Nordic region.
Volldal further commented on the significance of this order stating it heralds a new era for Nel after a phase of lower order intake. The strategic importance of this order highlights Nel's capabilities in providing competitive PEM solutions. This order will not only solidify Nel's position as a leader in the hydrogen technology space but will also serve as a reference point for future large-scale projects.
Operational Timeline and Impact
With the total contract value exceeding USD 50 million, the projects are anticipated to have a favorable impact on Nel's financial performance, enhance product costs, and expand the scale of their service and aftermarket operations in Europe. The delivery of these systems is scheduled from the second half of 2026 throughout 2027, with the aim of commencing commercial operations by early 2028.
The production of the stacks will take place at Nel's highly automated factory in Wallingford, US, reflecting the company's commitment to quality and efficiency in manufacturing operations.
About Nel ASA
Nel ASA is a pioneering company in hydrogen technology with roots dating back to 1927. The firm is recognized for its innovative electrolyser technology that facilitates the production of renewable hydrogen. As a key player in the green hydrogen economy, Nel's specialized hydrogen fueling equipment supports the decarbonization of various industries, including transportation, refining, steel, and ammonia production.
Contact Information
For further inquiries or additional information, please reach out to:
Kjell Christian Bjørnsen, CFO, +47 917 02 097
Wilhelm Flinder, Head of IR, Communications & Marketing, +47 936 11 350
Frequently Asked Questions
What is the value of the purchase order secured by Nel ASA?
The purchase order is valued at over USD 50 million.
Who are the partners involved in the projects?
The projects involve collaboration between Nel ASA, Kaupanes Hydrogen AS, and HyFuel AS, along with Hydrogen Solutions AS.
What technologies are being used in these projects?
The projects utilize Nel's MC 500 containerized PEM systems, which are known for their efficiency in hydrogen production.
When is the expected operational start for these projects?
The projects aim to commence commercial operations in early 2028.
What is Nel ASA's main focus in hydrogen technology?
Nel ASA specializes in electrolyser technology for producing renewable hydrogen and hydrogen fueling solutions.
