Nel says prepared to grow electrolyser production capacity

License: CC0 Creative Commons

March 10 (Renewables Now) - Norwegian electrolyser manufacturer Nel ASA (OSE:NEL) on Wednesday expressed readiness to expand its production capacity so it could help meet the higher ambitions of the European Union in relation to green hydrogen production.

At present, the company runs a 500-MW fully-automated manufacturing facility at Heroya in Norway. It completed the installation and tests of the installed equipment in the third quarter of 2021 and launched initial production in the final quarter of the year.

"Our brand-new and fully automated electrolyser manufacturing facility at Heroya is already producing at three shifts. We are reaching new production records every week and will start a site selection process for additional production capacity in Europe,” CEO Jon Andre Lokke stated.

According to figures disclosed in its latest financial report, Nel had spent NOK 322 million (USD 36m/EUR 32.5m) on the Heroya expansion project as of December 31, 2021.

In mid-February, the company said it had started a site selection process in relation to a large factory plan in the US to produce both PEM and alkaline electrolysers. It noted it has the ambition to develop a global production capacity towards 2025 in the US, Europe and Asia. Nel already has an electrolyser production plant in Wallingford, Connecticut.

Earlier this week, the European Commission announced its REPowerEU programme that outlines the plans by the EU to cut ties with Russia when it comes to fossil fuel supplies well before 2030. The programme is heavily based on the future use of biomethane and green hydrogen.

(NOK 1.0 = USD 0.112/EUR 0.101)

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