Nel ASA Accelerates Growth with Major Hydrogen Project Launch

Nel ASA NO0010081235

Norwegian hydrogen technology leader Nel ASA has taken a decisive step in its expansion strategy. The company's board has officially approved the industrialization of its next-generation platform, a move set to be powered by substantial European Union funding. This initiative aims to scale production dramatically and drive down the cost of green hydrogen, following a seven-year development phase.

A key catalyst for this strategic advancement is significant financial support from the EU Innovation Fund. The fund has committed grants of up to €135 million to Nel ASA, specifically to accelerate the industrialization of its platform towards a total capacity target of 4 gigawatts.

The terms of this support are highly favorable for the company:
* The grant covers 60 percent of eligible capital and operational expenditures.
* An initial payment of €10 million is triggered immediately by the final investment decision.
* This funding significantly reduces the equity requirement for the planned expansion.

Final Investment Decision for Herøya Site

The company has now reached a final investment decision (FID) to expand its manufacturing facility in Herøya, Norway. The core of this project involves establishing a production capacity of up to 1 gigawatt for its "Next Generation Pressurized Alkaline" electrolyzer platform. This marks the technology's transition from the prototyping phase into full-scale commercial manufacturing.

For this initial expansion phase, Nel estimates capital expenditures (CAPEX) of approximately 300 million NOK, before accounting for grants. These investments are projected to occur primarily across 2026 and 2027. The new system is engineered to deliver a competitive edge through lower system costs and enhanced energy efficiency.

Clear Roadmap to Market Deployment

A defined timeline is now in place for bringing this technology to market. The commercial launch of the new system is scheduled for the first half of 2026, with large-scale deliveries expected to commence in 2027. This expansion solidifies Nel's industrial footprint in Norway and directly addresses a primary challenge for hydrogen project developers globally: reducing the levelized cost of hydrogen production.