Nel ASA: Awarded EUR 135 million in grants for industrialization of next-generation electrolyser technology in Norway

Rhea-AI Summary

Nel ASA has been awarded a grant of up to EUR 135 million from the EU Innovation Fund for the industrialization of its next-generation pressurized alkaline electrolyser technology in Norway. The technology, currently in the prototype stage, shows promising results after five years of development. The grant will support a phased build-out of production at Herøya, Norway, with an initial annual capacity of 1-2 GW, potentially expanding to 4 GW.

Nel's CEO, Håkon Volldal, emphasized that this grant will significantly accelerate bringing their innovative technology to market, helping customers reduce the cost of green hydrogen. The final investment decision depends on successful testing and market acceptance. The project received support from Enova SF, the Norwegian national contact point for the EU Innovation Fund.

Positive

• Awarded EUR 135 million grant from EU Innovation Fund
• Developing next-generation pressurized alkaline electrolyser technology
• Planned initial production capacity of 1-2 GW, potentially expanding to 4 GW
• Accelerated market entry for innovative technology

Negative

• Final investment decision depends on successful testing and market acceptance
• New technology introduction carries inherent risks

OSLO, Norway, Oct. 22, 2024 /PRNewswire/ -- Nel Hydrogen Electrolyser AS, a fully owned subsidiary of Nel ASA (Nel) (OSE: NEL), has today been awarded a grant from the EU Innovation Fund of up to EUR 135 million for industrialization of its next-generation pressurized alkaline technology. The technology is currently being prototyped, and the potential industrialization is planned at Herøya, Norway.

"We continue to realize the full potential of our current technology at the same time as we develop future technologies to help our customers drive down the cost of green hydrogen. This grant will make it significantly easier for us to bring our new innovative pressurized alkaline technology to market," said Nel's President and CEO, Håkon Volldal.

Nel has been developing its next-generation pressurized alkaline technology for more than five years. The technology is currently in the prototype stage with promising results. Nel has now been awarded a grant for a phased build-out of production at Herøya, Norway. The grant application was supported by Enova SF, the Norwegian national contact point for the EU Innovation Fund.

"Building on nearly 100 years of electrolyser innovation, we have developed this new, differentiated technology that will be a step-change in cost and performance for renewable hydrogen. Bringing a new technology to market always entails risk, and we are thankful for the support we have previously received from the Research Council of Norway and Innovation Norway. With this substantially larger grant from the EU Innovation Fund, we will be able to bring the innovation to market at an accelerated pace," Volldal says.

The initial build-out is planned for an annual capacity of 1-2 GW, utilizing existing space at Nel's current facility in Herøya, Norway. The support will be phased with Nel's own investments for up to 4 GW of capacity for pressurized electrolyser equipment in Norway. A final investment decision to start building the capacity depends on achieving successful testing in the current prototype and planned pilot stage, as well as market acceptance of the new technology.

For additional information, please contact:
Kjell Christian Bjørnsen, CFO, +47 917 02 097
Wilhelm Flinder, Head of Investor Relations, +47 936 11 350
Lars Nermoen, Head of Communications, +47 902 40 153

About Nel ASA | www.nelhydrogen.com

Nel has a history tracing back to 1927 and is today a leading pure play hydrogen electrolyser technology company with a global presence. The company specializes in Alkaline and PEM technology for production of renewable hydrogen. Nel's product offerings are key enablers for a green hydrogen economy, making it possible to decarbonize various industries such as transportation, refining, steel, and ammonia.

This information is subject to a duty of disclosure pursuant to Section 5-12 of the Norwegian Securities Trading Act. This information was issued as inside information pursuant to the EU Market Abuse Regulation, and was published by Wilhelm Finder, Head of Investor Relations, at NEL ASA on the date and time provided.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/nel-asa/r/nel-asa--awarded-eur-135-million-in-grants-for-industrialization-of-next-generation-electrolyser-tec,c4054532

The following files are available for download:

https://mb.cision.com/Main/115/4054532/3066844.pdf

Release

 

View original content:https://www.prnewswire.com/news-releases/nel-asa-awarded-eur-135-million-in-grants-for-industrialization-of-next-generation-electrolyser-technology-in-norway-302282977.html

SOURCE NEL ASA

FAQ

What grant did Nel ASA (NLLSY) receive for its electrolyser technology?

Nel ASA received a grant of up to EUR 135 million from the EU Innovation Fund for the industrialization of its next-generation pressurized alkaline electrolyser technology in Norway.

Where is Nel ASA (NLLSY) planning to build its new electrolyser production facility?

Nel ASA is planning to build its new electrolyser production facility at Herøya, Norway, utilizing existing space at their current facility.

What is the initial planned production capacity for Nel ASA's (NLLSY) new electrolyser technology?

The initial planned production capacity for Nel ASA's new electrolyser technology is 1-2 GW annually, with potential expansion to 4 GW.

What conditions must be met for Nel ASA (NLLSY) to make a final investment decision on the new production facility?

Nel ASA's final investment decision depends on achieving successful testing in the current prototype and planned pilot stage, as well as market acceptance of the new technology.