Norwegian electrolyzer manufacturer, Nel, is to spend $36.2m to double the total annual alkaline production capacity in its Herøya factory, to 1GW, on the strength of rising demand for green hydrogen and production equipment that extends beyond Europe to the US.
The North American market will be important to Nel after US hydrogen tax credits were included in the Inflation Reduction Act, according to a company presentation.
In July, Nel Hydrogen Electrolyser AS, a subsidiary of Nel ASA, received its “largest ever purchase order” from an undisclosed US customer for 200 MW of alkaline electrolyser equipment for industrial application.
The contract for the electrolyser stacks is a firm order with a value in excess of $46m. Production and delivery of stacks is planned from February 2023 until mid-2024 at Nel’s large-scale electrolyser production facility at Herøya, according to a press release.
Following an ongoing engineering study, Nel could also get the opportunity to provide additional balance-of-plant (BoP) equipment for the project.
