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March 17, 2023 - Oslo, Norway,) Thursday, the European Commission presented initiatives to increase the speed and scale-up of the renewable hydrogen industry.
The Net Zero Industry Act identifies electrolysers as a strategic net zero technology for Europe. It aims to accelerate permitting and reduce the administrative burden on electrolyser manufacturers when applying for permits. Until now, there have been no harmonized rules across the European internal market regarding the permitting of clean-tech manufacturing.
“We look forward to the implementation of the numerous EU initiatives intending to create an attractive investment framework in Europe,” says Nel’s CEO, Håkon Volldal.
The EU package also includes an aspirational target of meeting at least 40% of the EU’s annual electrolyser manufacturing deployment needs by 2030 with electrolysers made in Europe.
“There is fierce competition between continents for global leadership in renewable hydrogen technology, and we welcome the EU setting a target for the production of electrolysers made in Europe,” says Volldal.
The Commission also communicated on the highly anticipated “Hydrogen Bank.” A first pilot auction of the Hydrogen Bank with an indicative budget of €800 million will be launched in the autumn of 2023. Winners of the auction will receive a fixed premium for each kg of renewable hydrogen produced over 10 years.
In addition, the European Commission presented a proposal for a “Critical Raw Materials Act” aimed at strengthening the European critical raw materials value chain as well as diversifying the EU’s imports of critical raw materials whilst reducing strategic dependencies.
The world’s first
Nel’s production of alkaline electrodes at Herøya in Norway, where the company has established the world’s first fully automated electrolyser factory, does not depend on any rare earth metals or other scarce resources. The facility has a capacity of 500 MW and the company has started the construction of a second production line, which will take the manufacturing capacity in Herøya to 1 GW by April 2024. The facility can be further expanded to 2GW manufacturing capacity.
In addition, Nel recently announced that the company has made a final investment to expand its existing manufacturing facility in Wallingford (US) from 50 to 500MW annual output.
The company is also in the final site selection phase for a new gigafactory in the United States of America. The gigafactory will have a potential annual manufacturing capacity of up to 4 GW.
Volldal says Nel is committed to adding capacity when and where the market needs it.
“We will continue to search for sites for further expansion. With our fully automated manufacturing concept, we have a great starting point for building more production lines and factories,” says Volldal.
Nel ASA: Receives firm purchase order from HH2E for 120 MW of electrolyser equipment
(March 14, 2023 - Oslo, Norway,) Reference made to the press release issued January 6, 2023, regarding a Letter of Intent with HH2E. Nel Hydrogen Electrolyser AS, a subsidiary of Nel ASA (Nel, OSE:NEL), has now signed a firm contract with HH2E for 120 MW of alkaline electrolyser equipment. The value of the contract is approximately EUR 34 million.
HH2E is a renewable energy company planning to deploy scalable hydrogen projects in Germany, such as the HH2E Lubmin in Mecklenburg-Vorpommern, where hydrogen production will commence by 2025 and be increased substantially by 2030.
"These projects are important for the energy transition in Germany and Europe, and we are excited to support HH2E in their efforts to create a greener society”, says Håkon Volldal, CEO of Nel
“One of the prerequisites for reaching our goal of producing at least a quarter of a million tonnes per year of RED-II compliant green hydrogen in Germany by 2030 is the sufficient availability of high-quality electrolysers in Europe, such as those that Nel will supply. We are convinced on Nel's technology, customer support, and experience.", says Andreas Schierenbeck, Co-founder and board member of HH2E.
https://mb.cision.com/Public/115/3722339/88c2e2916664514f.pdf
In the fourth quarter, Nel entered into a joint development agreement with General Motors and signed contracts with Woodside Energy and Statkraft. This positive development follows a strong third quarter in which the company secured a record size 200 MW order from a US client.
“We experience a strong market momentum and a high order intake, and we foresee this trend to continue going forward”, says Nel’s CEO, Håkon Volldal. “Terms and conditions are improving, and we are now winning attractive large-scale projects with solid margins and manageable risk profiles.”
As the market shifts towards large-scale projects, Nel has developed an ambitious electrolyser strategy.
“We aim to be the leading provider of electrolyser equipment with a 20-30% market share outside China” says Volldal.
To reach this ambition, Nel will continue to grow production capacity, offer the best technology with lowest LCOH and narrow its scope of delivery to stack and balance-of-stack.
For its Fueling division, Nel continues to see short-term challenges. An unfocused market approach has led to high organizational and operational complexity driving cost. Also, immature and non-standardized technology has resulted in high quality costs, which increase with higher station utilization.
“Despite the current poor performance, we see a substantial market potential for heavy-duty hydrogen fueling equipment. Some of the largest energy companies in the world, which are Nel customers, have made long-term commitments to developing this infrastructure,” says Volldal.
Nel is looking to capitalize on its highly experienced workforce and market-leading fueling technology by reducing current complexity and transitioning towards standardized high-capacity products, as well as assessing strategic partnerships and alternatives to improve the business case.
Note, the release date for the annual report has been delayed (from previously communicated 28 February).
EBITDA and other alternative performance measures (APMs) are defined and reconciled to the IFRS financial statements as a part of the APM section of the third quarter 2022 report on page 21.
The fourth quarter 2022 report and presentation are enclosed and available on www.newsweb.no (Ticker: NEL) and www.nelhydrogen.com. The presentation will be a virtual event only, followed by a Q&A session. The live presentation can be accessed on the company’s website www.nelhydrogen.com or by following this link. A recording of the presentation will be publicly available following the event.
Nel ASA: Fourth quarter 2022 financial results
(February 28 - 2023, Oslo, Norway) Nel ASA (Nel, OSE:NEL) reported revenues of NOK 414 million in the fourth quarter of 2022, up from NOK 248 million in the same quarter of 2021. Order intake was NOK 982 million, up 135% year-on-year, positively impacted by the NOK 600 million Woodside contract and the NOK 120 million Statkraft contract. At the end of the fourth quarter the order backlog was 2 613 million, up 112% from Q4 2021. The cash balance was NOK 3 139 million at quarter end.
Quarterly highlights
Nel ASA (Nel) reported revenue and operating income in the fourth quarter 2022 of NOK 414 million, up 67% from the fourth quarter 2021 (Q4 2021: 248). All segments, Fueling, PEM electrolysers and alkaline electrolysers experienced strong growth compared to same quarter last year. Full year revenue 2022 of NOK 994 million, up 25% compared to 2021.
Order intake in the quarter amounted to NOK 982 million (92% from electrolyser), up 135% from the same quarter last year (Q4 2021: 418). Full year order intake 2022 of NOK 2 275 million, up 135% compared to 2021.
At quarter end, Nel had a record high order backlog of NOK 2 613 million (85% related to electrolyser), up 112% from the fourth quarter of 2021, and up 24% compared to the previous quarter.
As a result of Fueling’s current financial performance and delayed growth trajectory, Nel has impaired all goodwill previously recognised in Fueling of NOK 296 million. In addition, Nel recognises an impairment of other intangible assets in Fueling by NOK 31 million.
EBITDA of NOK -216 million (Q4 2021: -168) driven by high losses in Fueling, low margins on electrolyser projects signed in 2020/2021 and increased personnel expenses to prepare for large-scale projects. Full year EBITDA of NOK -780 million, compared to EBITDA -475 million in 2021.
Cash balance of NOK 3 139 million (Q4 2021: 2 723).
Subsequent to the quarter,
Received purchased order from HyCC with a value of approximately NOK 125 million.
Investment decision to increase PEM production capacity in Wallingford to ~500 MW. Total capital expenditures estimated to be around NOK 260 million, and estimated to be at full capacity in 2025.
Revenues in Q4 2022 were NOK 414 million, up from NOK 248 million in Q4 2021. Nel Hydrogen Electrolyser reported 75% increase in revenue and operating income compared to the same quarter last year. Growth in alkaline electrolysers was strong as Nel continued the deliveries of electrolyser systems from the manufacturing facility at Herøya in Norway according to plan. Revenues from sales of alkaline electrolysers increased 337% compared to the same quarter last year, and quarterly sales of PEM electrolysers increased 14% from 2021. In Fueling, revenues have been suppressed by supply chain disruptions, which result in longer delivery times, some of which have accumulated into revenues this quarter.
Nel ASA: Expanding production capacity in Wallingford
(February 28 - 2023, Oslo, Norway) Nel ASA (Nel, OSE:NEL): Nel has taken the final investment decision to expand the production capacity at its PEM electrolyser manufacturing facility in Wallingford, Connecticut. The expansion will bring annual production capacity towards 500 MW in 2025.
“This is an important milestone for Nel,” says Nel’s CEO, Håkon Volldal. “With this expansion, we will increase PEM production capacity substantially and simultaneously reduce stack cost and improve stack efficiency.”
The investment cost is estimated at approximately NOK 260 million, and the new production line is expected to reach nameplate capacity in 2025.
“Last year we opened the world's first fully automated alkaline electrolyser plant in Herøya, Norway. Now we will industrialize the PEM platform, and the expansion in Wallingford is an important first step”, says Volldal.
The development of the ~500 MW PEM production line will be a substantial contributor to further expansion plans in the US, where developing a quality production concept is crucial for preparing Nel’s planned Gigafactory.
The planned Gigafactory will have a potential of up to ~4 GW production capacity, distributed between both PEM and Alkaline.
“We are considering three attractive alternatives in three different states and will make a final decision shortly,” says Volldal.
Nel is also expanding in Norway. The company recently started constructing the second production line at the Herøya facility, and the production capacity is expected to reach approximately 1 GW in April 2024.
“During the last months, we have received significant purchase orders for large-scale electrolyser projects. Therefore, we have ramped up production from three to five shifts, meaning that production is now running around the clock, also on the weekends”, says Volldal.
CORRECTION: Nel ASA: Invitation to presentation of Q4 2022 results
CORRECTION: There was an error in the date for the presentation. See corrected information below.
(February 21, 2023 – Oslo, Norway) Nel ASA (Nel, OSE:NEL) will publish its fourth quarter 2022 report on Tuesday 28 February at 07:00 CET, and host a presentation at 08:00 CET.
The presentation will be a virtual event only, followed by a Q&A session.
The live presentation can be accessed on the company’s website www.nelhydrogen.com or by following this link. A recording of the presentation will be publicly available following the event.
The fourth quarter 2022 report and presentation will be made available on www.newsweb.no and www.nelhydrogen.com.
Nel ASA: Invitation to presentation of Q4 2022 results
(February 21, 2023 – Oslo, Norway) Nel ASA (Nel, OSE:NEL) will publish its fourth quarter 2022 report on Thursday 28 February at 07:00 CET, and host a presentation at 08:00 CET.
The presentation will be a virtual event only, followed by a Q&A session.
The live presentation can be accessed on the company’s website www.nelhydrogen.com or by following this link. A recording of the presentation will be publicly available following the event.
The fourth quarter 2022 report and presentation will be made available on www.newsweb.no and www.nelhydrogen.com.
Nel ASA: Receives purchase order for 40 MW electrolyser equipment from HyCC
(February 6, 2023 - Oslo, Norway) Nel Hydrogen Electrolyser AS, a subsidiary of Nel ASA (Nel, OSE:NEL), has signed a contract for 40 MW of alkaline electrolyser equipment for about EUR 12 million with HyCC for its H2eron project in Delfzijl, Netherlands. Kraftanlagen Energies & Services has been contracted for the FEED study related to the project.
SkyNRG will use the hydrogen to produce sustainable aviation fuel (SAF), made from industrial byproducts and residue streams, such as used cooking oil. HyCC recently received the environmental permit for the project, and the company is working towards a final investment decision (FID) in 2024, in close alignment with SkyNRG and its partners.
“H2eron will have a great positive impact on emission reductions from the aviation sector, and we are proud to be selected as the supplier of our well-proven electrolyser technology to this exciting and important project”, says Hans Hide, Nel’s Chief Project Officer. “We are also excited to work with Kraftanlagen on this project, a professional EPC company. This allows Nel to focus on its core scope while still bringing a competitive solution for the hydrogen production system to the customer.”
“Reliable supplies of green hydrogen are key to decarbonizing sectors such as the aviation industry. We build on decades of experience in large-scale electrolysis and are excited to move to the next phase of the project with these strong partners to lay the foundation for the new hydrogen economy”, says Marcel Galjee, Managing Director of HyCC
“We are proud to bring our proven EPC expertise to this lighthouse project. This project will significantly support the decarbonization of the aviation industry. It is important that large-scale green hydrogen production plants now become reality and H2eron will provide for more sustainable aviation. At Kraftanlagen, we are committed to bring these projects to execution and make green hydrogen available”, says Alfons Weber, CEO of Kraftanlagen Energies & Services.
This is a firm purchase order for alkaline electrolyser equipment. Electrode production is estimated to commence in Q4 2025.
Nel ASA: Announces sale of Hyon shares
(January 24, 2023 - Oslo, Norway,) Nel ASA, (Nel, OSE:NEL) has divested all its shares in Hyon AS. A total of 9,804,000 shares were sold for a total net consideration of about NOK 7 million. Nel has reported the holding in Hyon as a financial current asset.
January 6, 2023 - Oslo, Norway,) Nel Hydrogen Electrolyser AS, a subsidiary of Nel ASA (Nel, OSE:NEL), has agreed with HH2E for a FEED (Front End Engineering and Design) study and a Letter of Intent for two 60 MW electrolyser plants in Germany. The FEED will commence after a firm purchase order is made, and the parties intend to conclude a contract for electrolyser equipment within the first half of 2023.
"These projects are important for the energy transition in Germany and Europe, and we are excited to support HH2E in their efforts to create a greener society”, says Håkon Volldal, CEO of Nel
HH2E’s two 60 MW plants will be among the largest green hydrogen production plants in Europe announced to date. Both facilities are in the first phase and can be significantly expanded. The hydrogen will be used for industrial applications, transportation, and heat. In total, HH2E is aiming for 4 GW of electrolyser capacity in Germany by 2030.
“One of the prerequisites for reaching our growth ambitions is the sufficient availability of high-quality electrolysers in Europe, such as those that Nel will supply. We are very happy and confident with Nel's technology and experience", says Alexander Voigt, Co-founder and board member of HH2E
The signing of the FEED study and Letter of Intent takes place Friday morning, the same day as Germany’s Vice Chancellor Dr. Robert Habeck, Norway’s Minister of Petroleum and Energy, Terje Lien Aasland and Minister of Industry and Trade, Jan Christian Vestre are visiting Nel’s factory in Herøya, Norway, where the electrolyser equipment for this project will be produced.
“This shows the importance of the German market for Nel, and we are honoured that the Vice Chancellor Dr. Robert Habeck, together with members of the Norwegian Government, want to visit our flagship facility today”, says Håkon Volldal
A very interesting read.
https://news.financial/comments/goodbye-tesla-shares-now-bet-on-the-hydrogen-rally-2023-plug-power-first-hydrogen-nel-ballard-power
Nel ASA: Signs Capacity Reservation Agreement for 16 hydrogen fueling stations
(Oslo, Norway, 20 December 2022) Nel Hydrogen Inc., a subsidiary of Nel ASA, (Nel, OSE:NEL) has signed a Capacity Reservation Agreement (CRA) with an undisclosed US energy company, for the delivery of 16 hydrogen fueling stations to be deployed in the US.
In line with the agreement Nel will reserve capacity and start sourcing long-lead items for the fueling stations. The manufacturing of the equipment at Nel’s factory in Herning, Denmark, will commence when a final purchase order is signed.
“We look forward to providing our hydrogen fueling equipment to this important client and contributing to the deployment of hydrogen fueling infrastructure in the US", says Robert Borin, Senior Vice President, Nel Fueling Division.
The value of the CRA is about USD 7 million and is paid upon signature. The final purchase order (including the CRA fee) is estimated to be about USD 17 million, whereas a final agreement is expected to be made in H1 2023. Delivery of the fueling equipment is scheduled to commence in Q4 2023 and run throughout 2024.
Nel ASA: Nel and GM collaborate on cost competitive renewable hydrogen production
(Detroit, USA and Oslo, Norway, 16 November 2022) Nel Hydrogen US, a subsidiary of Nel ASA (Nel, OSE: NEL), has entered into a joint development agreement with General Motors (NYSE: GM) to help accelerate the industrialization of Nel’s proton exchange membrane (PEM) electrolyser platform. By combining GM's extensive fuel cell expertise and Nel's deep knowledge of electrolysers, the two companies are looking to enable more cost competitive sources of renewable hydrogen.
“General Motors is one of the global leaders in hydrogen fuel cell propulsion with more than 50 years of experience. We believe this collaboration will give us a competitive advantage in industrializing the production of our PEM electrolysers and further improving the efficiency of our technology,” said Nel’s CEO, Håkon Volldal.
“Adding Nel as a strategic collaborator is an important step to help us commercialize fuel cell technology. Electrolysis is key to creating consistent, clean sources of hydrogen to power fuel cells,” said Charles Freese, GM executive director, Global HYDROTEC. “Nel has some of the most promising electrolyser technology to help develop clean hydrogen infrastructure, and we believe our HYDROTEC fuel cell IP can help them get closer to scale.”
Nel was the first company in the world with a fully automated alkaline electrolyser production line. The next step will be to industrialize the production of its PEM electrolyser equipment in a similar way which will enable considerable technology advancement.
GM is developing and commercializing both HYDROTEC hydrogen fuel cell and Ultium battery technologies that deliver where it matters most: performance and cost. This is opening new revenue potential for GM as industries – including freight trucking, aerospace, power generation and locomotive – turn to GM to improve performance and reduce emissions.
“An automated production concept is key when scaling up and driving down cost on electrolyser technology. By utilizing the combined expertise of both companies, it will help to more quickly develop a green hydrogen technology that is competitive with fossil fuels,” said Volldal.
A PEM electrolyser and a fuel cell are largely based on the same principles. A PEM electrolyser uses electricity and water to produce hydrogen and oxygen, while a fuel cell reverses the process, using hydrogen and oxygen to produce electricity and water. As GM has made major steps and gained expertise with fuel cells, the two companies see substantial synergies by transferring this to Nel’s PEM platform.
Nel will be compensating GM for the development work and IP transfer on an ongoing basis and pay a license after successful commercialization dependent on how much of the end product is based on GM technology.
Nel ASA: Receives 40 MW electrolyser order from undisclosed North European client
(Oslo, 14 November 2022) Nel Hydrogen Electrolyser AS, a subsidiary of Nel ASA (Nel, OSE:NEL), has signed a NOK 120 million contract for alkaline electrolyser equipment with a high quality North European energy company. The contract also includes front-end engineering and design (FEED) study related to the deliveries.
This contract is for alkaline electrolyser equipment and related FEED, and includes pass-through mechanisms for steel and nickel price adjustments. Production of electrodes is estimated to be completed by end-2023.
Nel ASA: Share capital increase registered
(Oslo, 25 October 2022) Reference is made to the stock exchange announcement by Nel ASA (the "Company") on 21 October regarding the issuance of shares in Nel ASA. The share capital increase pertaining to the issuance of the 34,200 new shares has now been registered with the Norwegian Register of Business Enterprises. The Company's new registered share capital is 312,665,060.80, divided into 1,563,325,304 shares, each with a par value of NOK 0.20.
Nel is well underway finding a suited site in the US for PEM and Alkaline electrolyser production and expects to conclude the site selection process within H1 2023.
Revenues in Q3 2022 of NOK 183 million were flat from Q2 2022, while down from NOK 229 million in Q3 2021. This was mainly caused by reductions in both Fueling and for PEM electrolysers, while alkaline electrolysers experienced high growth. In Fueling the low order intake in previous quarters combined with supply chain challenges resulted in low sales of new fueling stations. For PEM electrolysers, the order intake has been good for smaller systems, but actual deliveries and revenue recognition has slowed down due to long lead times on certain components.
EBITDA decreased from same quarter last year. In addition to lower revenues in Fueling and PEM electrolysers and higher personnel expenses, the EBITDA was negatively impacted by high quality costs in Fueling, increased raw materials expenses and supply chain challenges.
EBITDA and other alternative performance measures (APMs) are defined and reconciled to the IFRS financial statements as a part of the APM section of the third quarter 2022 report on page 21.
Note that Nel has decided to increase its value threshold for stock exchange notices when receiving firm purchase orders or grants. The current value threshold of about EUR 2 million has been increased to about EUR 5 million.
Nel ASA: Third quarter 2022 financial results
(Oslo, 20 October 2022) Nel ASA (Nel, OSE:NEL) reported revenues of NOK 183 million in the third quarter of 2022, down from NOK 229 million in the same quarter of 2021. Third quarter order intake was NOK 775 million, up 456% from the same quarter last year, heavily impacted by the 200MW, EUR 45 million, purchase order from an undisclosed US customer. At the end of the third quarter the order backlog was 2 103 million, up 107% from Q3 2021. Subsequent to the quarter Nel announced another record, signing a NOK 600 million contract with Woodside Energy for its first hydrogen project in the US.
Quarterly highlights
Nel ASA (Nel) reported revenue and operating income in the third quarter 2022 of NOK 183 million, down 20% from the third quarter 2021 (Q3 2021: 229). The decline was driven by lower sales in Fueling and PEM electrolysers whereas alkaline electrolysers experienced strong growth.
Order intake in the quarter amounted to NOK 775 million (88% from electrolyser), up 456% from the same quarter last year (Q3 2021: 139).
At quarter end, Nel had a record high order backlog of NOK 2 103 million (80% related to electrolyser), up 107% from the third quarter of 2021, and up 46% compared to the previous quarter.
EBITDA of NOK -214 million (Q3 2021: -113) driven by high losses in Fueling, low margins on electrolyser projects signed in 2020/2021 and increased personnel expenses to prepare for large-scale projects
Strong cash balance of NOK 3 520 million (Q3 2021: 2 930).
Subsequent to the quarter,
Nel has received approximately USD 6 million in funding from US Department of Defence for accelerating advanced PEM electrolyser stack development
Nel has received a new NOK 600 million contract in the U.S. from Woodside Energy for alkaline electrolyser equipment.
“We are truly excited about the recent developments with the signings of two record size contracts in a very short time period”, says Nel’s CEO, Håkon Volldal.
“As our clients are increasingly worried about electrolyser production capacity from quality producers, the market balance is moving in Nel’s favour. We are now able to negotiate better terms and conditions, a trend we foresee to continue going forward”, Volldal says.
US is becoming an important market for green hydrogen production, mainly due to favourable framework conditions following President Biden’s Inflation Reduction Act (IRA), which is now accelerating final investment decisions (FID). The electrodes Nel will deliver to the recently signed large-scale projects will be produced in the Herøya facility in Norway – the only fully automated electrolyser manufacturing facility in the world.
“Having a proven and fully automated production concept gives Nel a huge advantage as it allows for future-proof scaling at speed. This is key to meeting the rapidly growing market demand” Volldal says
https://energynews.biz/nypa-shares-results-from-green-hydrogen-blending/