Nel ASA: Expanding production capacity in Wallingford

Rhea-AI Summary

Nel ASA has announced a final investment decision to expand its PEM electrolyser manufacturing capacity in Wallingford, Connecticut, with a planned capacity of 500 MW by 2025. The investment is approximately NOK 260 million and will enhance the efficiency and reduce costs. CEO Håkon Volldal stated this expansion is crucial for their upcoming Gigafactory, which aims for 4 GW production capacity. Additionally, Nel is increasing production at its Herøya facility, targeting 1 GW capacity by April 2024. The company has also ramped up production shifts to accommodate significant purchase orders.

Positive

• Expansion of PEM electrolyser capacity to 500 MW by 2025 will enhance production efficiency and reduce costs.
• Investment of NOK 260 million signifies strong commitment to growth in the hydrogen sector.
• Plans for a Gigafactory with a potential of 4 GW capacity indicate long-term growth strategy.
• Increased production capacity at Herøya facility expected to reach 1 GW by April 2024.

Negative

• None.

OSLO, Norway, Feb. 28, 2023 /PRNewswire/ -- Nel ASA (Nel), (OSE: 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.

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 technology company with a global presence. The company specializes in electrolyser technology for production of renewable hydrogen, and hydrogen fueling equipment for road-going vehicles. 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.

 

The following files are available for download:

https://mb.cision.com/Main/115/3724183/1879638.pdf

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SOURCE NEL ASA

FAQ

What recent decision did Nel ASA make regarding production capacity?

Nel ASA has decided to expand its PEM electrolyser manufacturing capacity in Wallingford, Connecticut, to 500 MW by 2025.

How much is Nel ASA investing in its Wallingford facility expansion?

The investment for the expansion is estimated at approximately NOK 260 million.

What is the expected production capacity at Nel ASA's Herøya facility by April 2024?

The Herøya facility's production capacity is expected to reach approximately 1 GW by April 2024.

What are Nel ASA's plans for their Gigafactory?

Nel ASA plans to develop a Gigafactory with a potential production capacity of up to 4 GW, with decisions expected soon on location.

What impact will the expansion of Nel ASA's production capacity have?

The expansion is expected to improve production efficiency, reduce costs, and support increased demand for large-scale electrolyser projects.