NEL ASA UNSP/ADR - NLLSY STOCK NEWS

Nel ASA (Nel) and Nikola have realigned their previous agreement, and at the same time Nel will become Fortescue's supplier for their 80 MW electrolyser, for a total consideration of

Nel ASA (Nel) reported quarterly revenues of NOK 405 million in Q3 2023, up 121% from the same quarter last year. EBITDA improved to NOK -109 million. Order intake was NOK 352 million, and the order backlog was NOK 2,854 million. Cash balance was NOK 3,799 million. Nel Hydrogen Electrolyser saw a 116% increase in revenue. Two significant electrolyser contracts were signed. Plymouth Charter Township was selected as the location for Nel's new electrolyser Gigafactory. The Fueling division is shifting focus towards high-capacity systems for heavy-duty transportation.

Nel has selected Plymouth Charter Township, Michigan as the location for its next gigafactory, with a total annual capacity of 4 GW Alkaline and PEM technology. The Michigan Strategic Fund has provided a financial support package of $10 million grant and a $6.25 million exemption. Nel has secured over $50 million in support for its Michigan site, with a potential increase to $150 million pending approval. The Governor of Michigan welcomes the investment, highlighting the creation of jobs and leadership in clean energy.

Nel ASA (Nel) reported record-high quarterly revenues of NOK 475 million in Q2 2023, up 159% YoY. Order intake was NOK 428 million, up 81% YoY. Order backlog increased by 106% to NOK 2,964 million. Cash balance was NOK 4,122 million at quarter end.

Nel plans to build a new automated gigawatt electrolyser manufacturing facility in Michigan, creating over 500 jobs. Michigan is chosen for financial incentives, skilled workforce, and collaboration with General Motors. The facility will have a production capacity of up to 4GW of Alkaline and PEM electrolysers.

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.

Nel Hydrogen Inc., a subsidiary of Nel ASA, has signed a Capacity Reservation Agreement (CRA) with a US energy company for 16 hydrogen fueling stations. The CRA, valued at approximately USD 7 million, will facilitate the sourcing of equipment, with manufacturing set to begin in Herning, Denmark, after a final purchase order is signed. The total agreement value is projected at USD 17 million, with deliveries expected in Q4 2023 through 2024.