#Norway #Oslo #Hydrogen Technology #Nel ASA #SAMSUNG E&A

Nel ASA Teams Up with SAMSUNG E&A for Hydrogen Advancements

In an exciting development for the hydrogen sector, Nel ASA, a leader in electrolyser technology, has recently signed a collaboration agreement with SAMSUNG E&A. This partnership enables SAMSUNG E&A to utilize Nel's electrolysers in designing comprehensive hydrogen plants for their clients. In addition, SAMSUNG E&A is set to become the largest single shareholder of Nel ASA after securing a major share acquisition.

This collaboration represents a strategic move to enhance the global delivery capabilities of both companies, allowing Nel to broaden its market reach while strengthening its competitive standing in the hydrogen technology landscape.

Details of the Collaboration

The EPC (Engineering, Procurement, and Construction) agreement allows SAMSUNG E&A to offer its customers optimally designed hydrogen production plants utilizing Nel’s advanced electrolyser technology. This partnership is expected to generate significant value by integrating Nel's alkaline and Proton Exchange Membrane (PEM) technologies into SAMSUNG E&A's robust engineering service portfolio.

Håkon Volldal, President and CEO of Nel ASA, emphasized the importance of having reputable partners like SAMSUNG E&A, stating, “Our strategy is to focus on electrolyser stack and balance of stack technology. Therefore, we need to work with EPC companies who can provide balance-of-plant solutions and promote our global market reach.”

SAMSUNG E&A's Role

SAMSUNG E&A, known for providing comprehensive solutions across the energy sector, is committed to delivering integrated electrolyser solutions that enhance the feasibility and bankability of green hydrogen projects. Hong Namkoong, CEO of SAMSUNG E&A, highlighted that green hydrogen is vital for clean technology and its potential to serve as a building block for various carbon-neutral products such as green ammonia and e-fuels.

The collaboration is not just about individual projects; it's a pathway to increased market competitiveness through shared resources and expertise in hydrogen and carbon-neutral technologies.

Share Acquisition Details

In a separate yet related transaction, SAMSUNG E&A is acquiring 10% of newly issued shares from Nel ASA at a rate reflecting an average of the company’s stock prices over a designated period, which equates to approximately NOK 353 million. Post-transaction, SAMSUNG E&A will hold a 9.1% stake in Nel ASA.

The Nel ASA Board of Directors has expressed support for SAMSUNG E&A nominating a member to join Nel's Board during the upcoming 2025 AGM. This is seen as an encouraging sign of SAMSUNG E&A’s commitment and belief in the future potential of this partnership.

Future Implications

With SAMSUNG E&A now a cornerstone investor in Nel, both companies are exploring new business avenues that extend beyond EPC services. They aim to leverage their respective strengths to innovate and capitalize on emerging market opportunities. As SAMSUNG E&A sets its sights on expanding its technology-based offerings, the collaboration with Nel ASA is poised to play a central role in their strategy.

In conclusion, this collaboration between Nel ASA and SAMSUNG E&A is significant not only for the two firms involved but also for the hydrogen industry's future, underscoring the importance of strategic partnerships in advancing sustainable energy solutions.