In a decisive move that underscores Europe's commitment to a sustainable future, Nel ASA's subsidiary, Nel Hydrogen Electrolyser AS, has clinched a monumental €135 million grant from the EU Innovation Fund. This financial injection is not merely a boost; it's a strategic catalyst propelling Nel towards the industrialization of its next generation pressurized alkaline electrolyser technology, a pivotal leap in the quest for cost-effective green hydrogen.

This substantial funding transcends typical grants, acting as a validation of Nel's pioneering efforts to revolutionize hydrogen production. The focus is squarely on driving down the production costs of green hydrogen, a critical factor in its widespread adoption. Nel's innovative pressurized alkaline electrolysers promise to outperform traditional models by offering superior efficiency and adaptability, particularly in responding to the fluctuating nature of renewable energy sources.

Hakon Volldal, Nel's President and CEO, articulated the transformative impact of this grant, emphasizing that it significantly streamlines the market entry of their groundbreaking pressurized alkaline technology. He highlighted the dual focus on refining existing technologies and pioneering next-generation electrolysis solutions, underscoring Nel's commitment to lowering the economic barriers to green hydrogen.

The lion's share of the grant will fuel the expansion of Nel's Herøya facility in Norway, with a targeted production capacity of 1-2 gigawatts  annually. Ambitious plans are in place to scale this to 4 GW, contingent upon successful validation through rigorous prototype and pilot project testing. This phased approach underscores Nel's dedication to ensuring market readiness and fostering widespread acceptance of its advanced electrolyser technology.

One of the most compelling aspects of Nel's technology is its economic viability. Unlike Proton Exchange Membrane (PEM) electrolysers, which rely on costly platinum group metals, Nel's alkaline models are designed to operate efficiently without these expensive materials. This strategic advantage positions Nel's technology as a more accessible and scalable solution for green hydrogen production, while maintaining comparable performance benefits.

Nel's nearly century-long legacy in electrolyser development provides a robust foundation for this technological leap. The company's established expertise in manufacturing atmospheric alkaline and PEM electrolysers at its facilities in Norway and the U.S. positions it as a dominant force in the global hydrogen sector.

The EU Innovation Fund grant is more than just financial support; it's a strategic partnership that accelerates Nel's contribution to Europe's ambitious climate goals. By advancing the commercial viability of green hydrogen, Nel is poised to play a pivotal role in decarbonizing critical sectors, including transportation, industry, and power generation.

As the world accelerates its transition to a low-carbon economy, Nel's advancements in electrolyser technology are set to redefine the landscape of green hydrogen production. With the backing of the EU and its own relentless innovation, Nel is not just participating in the green hydrogen market; it's shaping its future.