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

Nel ASA Partners with SAMSUNG E&A for Enhanced Hydrogen Solutions

In a strategic move aimed at bolstering its global presence in the hydrogen energy sector, Nel ASA has signed a comprehensive EPC (Engineering, Procurement, and Construction) collaboration agreement with SAMSUNG E&A. The partnership is structured to allow SAMSUNG E&A to deliver tailored hydrogen plants, proficiently integrated with Nel's cutting-edge electrolysers.

Key Aspects of the Collaboration

This recent arrangement is pivotal, not just for technology transfer but also for expanding the market reach of both companies. SAMSUNG E&A, now a cornerstone investor in Nel ASA, will acquire 10% of newly issued shares in the company. This investment elevates SAMSUNG E&A to the status of the largest single shareholder in Nel, marking a significant step in corporate partnership dynamics aimed at unlocking value in the clean tech sector.

As stated by Håkon Volldal, President and CEO of Nel ASA, "Our strategy is focused on electrolyser stack and balance of stack technology. We are eager to collaborate with EPC companies that can enhance our market access while delivering effective balance-of-plant solutions. The partnership with SAMSUNG E&A, given their formidable reputation and exceptional engineering capabilities, is a tremendous honor for us."

The Backdrop of SAMSUNG E&A

Formerly recognized as Samsung Engineering, SAMSUNG E&A brings extensive expertise in providing a global suite of engineering solutions tailored for the energy landscape. Their portfolio includes everything from initial feasibility studies to comprehensive project execution and commissioning, with a pronounced emphasis on smart manufacturing and sustainable energy systems.

With various large-scale hydrogen initiatives already underway globally, SAMSUNG E&A is positioned to leverage this agreement to integrate electrolyser solutions that offer competitive value and bankability to owners of green hydrogen projects. As highlighted by CEO Hong Namkoong, green hydrogen is a crucial technology that not only serves as a standalone resource but also as a raw material for various green energy solutions such as ammonia, methanol, and sustainable aviation fuel.

Collaborative Product Development

The partnership will also pave the way for further collaboration on a unified Balance of Stack (BoS) system for Nel's Alkaline electrolysers, demonstrating a commitment to innovation and efficiency. Such advancements are vital as the world transitions to greener forms of energy.

In a disclosure regarding financials, Nel ASA will issue approximately 167 million shares to SAMSUNG E&A at a price of NOK 2.1125 per share. This translates into a cash infusion of about NOK 353 million, reinforcing the financial backbone of Nel as it drives forward with its hydrogen projects and technology advancements. SAMSUNG E&A has agreed to a two-year lock-up period concerning their shares.

Future Prospects

Looking toward the future, both companies expressed optimism regarding the outcomes of their collaborative efforts. The growing commitment from SAMSUNG E&A not only illustrates confidence in Nel's technology but also underscores a shared vision towards achieving sustainability in the hydrogen and broader energy market.

"We value the dedication displayed by SAMSUNG E&A as they commit to the future success of our partnership. Their involvement as a key investor enhances our potential to innovate and lead within the hydrogen technology space," concluded Volldal.

As the energy market grapples with the challenges of transitioning towards greener alternatives, the collaboration between Nel ASA and SAMSUNG E&A stands as a promising beacon for the future of hydrogen technology and clean energy solutions.