#Norway #Hydrogen Technology #Nel ASA #Herøya

Nel ASA's Groundbreaking Investment in Hydrogen Technology

Nel ASA, a prominent name in the hydrogen industry, has recently taken a monumental step towards enhancing its competitive edge in the clean hydrogen market. Following an extensive seven-year development program, the company has announced its decision to invest in the industrialization of its Next-Generation Pressurized Alkaline platform, marking a significant milestone in its journey towards sustainable energy solutions.

The decision to ramp up production capacity to 1 GW at Nel's facility in Herøya, Norway, comes as a result of successful testing and validation of the new technology. The prototype, which focuses on producing clean hydrogen efficiently, has received positive feedback from rigorous assessments, showcasing its market-leading energy efficiency metrics. This initiative is supported by substantial contributions from the EU Innovation Fund, reaffirming the project's relevance in today's drive for sustainability.

The inception of the Next Generation Pressurized Alkaline system dates back to 2018, when Nel began exploring the potential for higher efficiency and cost-effective hydrogen production technologies. The innovations surrounding this system promise to drastically reduce the CAPEX associated with hydrogen facilities while simultaneously improving the overall economics of hydrogen production, thus bridging essential funding gaps for new installations.

Håkon Volldal, the President and CEO of Nel, elaborated on the importance of this development, stating, "Our new solution is crucial not only for Nel but for the entire clean hydrogen industry. A reduction in the levelized cost of hydrogen (LCOH) is expected to unlock numerous business opportunities that were previously unfeasible without significant subsidies."

The design of the Next Generation Pressurized Alkaline platform features a modular, skid-based structure, allowing for pre-fabrication and factory testing processes before shipping, which simplifies the logistics and installation phases. This transformative approach minimizes the complexity usually associated with extensive engineering efforts. Furthermore, the platform's ability to operate outside without the need for dedicated building construction lowers deployment costs significantly.

With an estimated investment of NOK 300 million required for the initial 1 GW project, Nel is poised to receive financial support amounting to up to EUR 135 million from the EU Innovation Fund, covering up to 60% of the associated CAPEX and operational expenses during its industrialization phase. This financial backing is structured around milestones set by the EU, signaling strong faith in Nel's innovative approach to hydrogen production.

The anticipated timeline for this major initiative sees the commercial launch scheduled for the first half of 2026, with full-scale production expected to commence by 2027. As the advancements in this platform continue to unfold, Nel is also investigating the viability of revitalizing its previously established atmospheric alkaline production lines that currently remain idle at the Herøya site.

As a pioneer in hydrogen electrolyzer technology since its founding in 1927, Nel ASA's commitment to delivering innovative solutions for green energy remains solid. Its offerings are fundamental to achieving a decarbonized economy, capable of reshaping industries such as transportation, refining, and ammonia production. With a foundation of extensive technological experience, Nelson is poised to uphold its leadership status in the burgeoning hydrogen market.

The path laid out by this investment decision is not just a testament to Nel ASA's ambitions, but also a significant contribution to the global movement towards sustainable energy solutions, paving the way for a renewable hydrogen economy in the future.