Nel Ord Share Price (0E4Q)

January 21, 2025 - Oslo, Norway) Nel Hydrogen US, a subsidiary of Nel ASA (Nel, OSE:NEL), has received a purchase order for two containerized PEM electrolyser units for about USD 7 million. The two MC500 electrolysers, 2.5 MW each, will be used to produce hydrogen for a new steel mill in the US.

The undisclosed customer, one of the largest US steel producers, already uses Nel’s PEM electrolysers to generate hydrogen at two other sites in the US.

“We are delighted to receive a purchase order from an existing customer, as it signifies their satisfaction with the performance of our electrolysers,” says Nel’s Chief Commercial Officer, Todd Cartwright.

“We continue to see an increasing demand for our containerized PEM electrolysers for smaller installations as this reliable turn-key concept offers easy outdoor installation and operation,” he says.

This is a firm purchase order for two PEM MC500 units that will be produced Nel’s manufacturing facility in Wallingford, Connecticut.

Another Green business that may trundle on..but I’ll never recover my investment!

Oslo, Norway) Nel ASA (Nel, OSE:NEL) and its subsidiaries have initiated a process to adjust capacity to market demand by reducing the workforce and temporarily halting production at the Alkaline production facility in Herøya, Norway.

The market for renewable hydrogen production technology has been slower than expected for the industry in general, including Nel. Order intake in 2023 and 2024 fell short of expectations, and several customer projects are significantly delayed or are at risk of being cancelled. In addition, Nel has initiated a process to retain control over delivered equipment as compensation for more-than-one-year overdue receivables (from an undisclosed customer) as communicated in previous financial reports. As a result, Nel has limited need to produce new alkaline electrolyser equipment in the near-term and will adjust its production and organizational capacity correspondingly.

“While the long-term outlook for clean hydrogen remains strong, we must make some tough decisions today based on lower order intake in 2024 than expected,” says Nel’s President and CEO, Håkon Volldal. “This is an unfortunate situation, and I’m sorry that we now have to let go of many qualified people.”

Nel has decided to halt production in Herøya temporarily. This will predominantly impact the Norwegian workforce in the Alkaline business segment. The planned reductions will affect roughly 20% of the full-time employees reported at the end of the third quarter 2024. Approximately half of the reductions have already been executed in the fourth quarter of 2024 through voluntary resignations and termination of consultants.

“The company remains well financed, and with these actions we will preserve cash while still being able to aggressively pursue sales opportunities and invest in technology development,” says Kjell Christian Bjørnsen, CFO of Nel.

Nel continues to see a strong pipeline of clean hydrogen projects and is actively working on several concrete bids, including projects where Nel is currently undertaking paid front-end engineering design (FEED) studies. Nel also sees good near-term opportunities to sell containerized PEM systems. The company will also continue to further develop its current and next-generation technology platforms.

ENDS

Nel Hydrogen Electrolyser AS, a subsidiary of Nel ASA (Nel, OSE:NEL), has signed a new contract for 10 MW of alkaline electrolyser equipment for about EUR 5 million with Samsung C&T Corporation Engineering & Construction Group (‘Samsung C&T’) for its first pilot for nuclear connected (pink) hydrogen production plant.

The first contract with Samsung C&T signed earlier this year was for an off-grid project based on solar power, while the client will now set up a demonstration plant to validate the commercial model for nuclear pink hydrogen. The aim is to produce hydrogen from excess nuclear power generation, allowing to utilize energy that is otherwise wasted in periods of oversupply, increasing overall energy efficiency

“Samsung C&T has ambitious plans in the hydrogen industry, and we are pleased that we, for the second time now, have been selected to deliver the electrolyser for this exciting and meaningful project,” says Håkon Volldal, President and CEO of Nel ASA.

Samsung C&T (Construction and Trading) focuses on global engineering, procurement, and construction. The company has signed several green hydrogen agreements and continues to strengthen its energy transition business portfolio.

"This is the very first hydrogen production project using nuclear power in Korea and we needed to have the most reliable electrolysis technology for executing the project. There is no doubt that Nel's technology can meet our expectation. We are thrilled to partner with Nel again in pink hydrogen production project. Samsung C&T hope to strengthen the partnership with Nel to develop more opportunities in clean hydrogen business," says Samsung C&T's Head of Energy Solution Business Unit, Byung Soo Lee.

This is a firm purchase order for alkaline stacks and balance-of-stacks (BoS). The electrodes will be produced in the Herøya facility in Norway, the world’s first fully automated electrolyser production line.

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.