#Norway #Oslo #Nel ASA #Michigan #Tax Credits

Nel ASA Awarded Additional Tax Credits for Manufacturing Expansion in Michigan

OSLO, Norway – January 12, 2025 – Nel ASA, a leading global provider of hydrogen electrolyser technology, has made significant strides in enhancing its manufacturing capabilities. The company's subsidiary has recently been granted up to USD 29 million in additional investment tax credits from the Qualifying Advanced Energy Project Tax Credit (48C) program. This program is a part of the broader initiatives provided by the Inflation Reduction Act, which supports clean energy technologies promoted by the U.S. federal government.

Details of the Tax Credit Award

The tax credits awarded equate to approximately 30% of qualifying investments made by Nel for its manufacturing expansion in Michigan. However, the receipt of these funds is contingent upon meeting certain requirements, including wage and apprenticeship standards, aimed at cultivating a skilled workforce in the area.

Kathy Ayers, Vice President of Research and Development at Nel, expressed gratitude for the ongoing support from the U.S. Department of Energy, emphasizing the importance of federal funding in boosting the company’s manufacturing capabilities for advanced electrolyser products.

“Nel has a long history of investing in R&D and commercializing advancements co-supported by federal funding,” Ayers noted. “This continued support not only instills confidence in our operations but also propels our mission towards a sustainable future.”

The recent tax credit addition brings Nel’s total secured support to nearly USD 200 million, gathered from both the state of Michigan and the Department of Energy. This bold investment reflects the company’s commitment to scaling up production facilities to meet the surging demand for green hydrogen technologies, essential for decarbonizing several industries including transportation and steel production.

Future Outline for the Michigan Expansion

While the foundation for expanding the Michigan facility is laid out, the final investment decision has not yet been reached. The progression of this project heavily relies on market demand for renewable hydrogen. Nel ASA’s dedication to producing renewable hydrogen places it at the heart of the green transition required to meet ambitious global climate goals.

Established in 1927, Nel ASA is renowned for its expertise in hydrogen solutions, specifically focusing on Alkaline and Polymer Electrolyte Membrane (PEM) technologies. These technologies have become critical enablers in the shift towards a green hydrogen economy, providing sustainable energy alternatives across various sectors.

As industries worldwide pivot towards cleaner energy sources, funding and support from government initiatives like the 48C tax credits play an instrumental role in accelerating growth and innovation in the clean energy sector. The recognition of Nel ASA's potential to deliver quality products through their advanced technology positions them to be a key player in this evolving market.

For further queries regarding this development, interested parties can reach out to:

• - Kjell Christian Bjørnsen, CFO: +47 917 02 097
• - Wilhelm Flinder, Head of Investor Relations: +47 936 11 350

For additional information about Nel ASA and its innovative technologies, please visit Nel's official website. This announcement follows the requirements of the Norwegian Securities Trading Act, ensuring transparency and adherence to regulatory standards.

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In summary, Nel ASA's recent tax credit allocation underscores the shifting landscape of energy production, emphasizing the importance of infrastructure development in fostering a sustainable future. With ongoing support and investment, the transition to renewable energy sources is poised for remarkable growth.