Nel builds a second production line at Herøya
The Herøya expansion supports what we have previously communicated: when demand is present, we will add capacity.
Nel Asa has decided to build a new fully automated production line at Herøya in Norway, doubling its capacity for the production of alkaline electrolyser stacks to 1 GW.
The investment decision was made weeks after the company received a record size order for 200 MW of alkaline electrolyser stacks from a US customer.
The recent 200 MW contract will not be a one-off, and as we see a potential for additional large orders in the foreseeable future, we have decided to expand our production capacity.
Nel’s facility at Herøya is the world’s first fully automated electrolyser manufacturing factory and was officially opened by Norwegian Energy Minister Terje Lien Aasland in April this year.
Nel’s new factory at Herøya is a step in the right direction towards a future without emissions. In a growing hydrogen market, even more, electrolysers are needed, and it will be a sign of quality that the electrolysers are marked “made in Norway”.
The factory is currently running on three shifts and is setting weekly production records. Towards year-end, the company expect to have five shifts running. While the production capacity is 500 MW, it can be expanded to 2 GW, generating a significant amount of new direct and indirect workplaces around Herøya and Porsgrunn, Norway.
The new production line is expected to be in operation from April 2024. The total Capex commitment for the equipment will be approximately EUR 35 million.
Håkon Volldal, CEO of Nel, said, “The expansion means that Nel is strengthening its position as a global frontrunner for development and industrialisation of green hydrogen technology and provides Norway with a great opportunity to take on the role as the leading exporter of electrolyser equipment to a rapidly growing market.”
In another development, Nel Hydrogen has received a purchase order from an undisclosed European client for the delivery of several H2Station™ units for fueling of light- and heavy-duty fuel cell electric vehicles.
The contract has a total value of approximately €8 million and includes service & maintenance. The delivery of the H2Station™ units is planned for early 2023.
