Nel bags firm order for 120-MW German Baltic coast electrolyser

Norway’s Nel ASA (OSE:NEL) has secured a firm order to supply 120 MW of alkaline electrolysers for the initial phase of what could become a gigawatt-scale green hydrogen production hub on the German Baltic coast.

The firm deal was placed by German green energy company HH2E AG and is valued at roughly EUR 34 million (USD 36.4m), Nel said on Tuesday. The contract, which calls for the delivery of two electrolysers, comes on the heels of a letter of intent between the parties signed early in 2023.

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The electrolysers will be installed in Lubmin, in the German state of Mecklenburg-Vorpommern, where hydrogen production is due to be launched by 2025. The project will the first of what HH2E hopes to eventually become a 4-GW portfolio in Germany. As announced in June 2022, the company created a joint venture with Swiss natural gas and power trader MET Group to develop the Power-to-X (PtX) facility on the site of a former nuclear power plant.

By 2025, the facility should have the capacity to produce some 6,000 tonnes of green hydrogen per year. It is planned to be gradually expanded to more than 1 GW of electrolysis capacity and over 60,000 tonnes of green hydrogen by the end of the decade.

(EUR 1.0 = USD 1.070)