Nel ASA Launches Lower-Cost Hydrogen Platform

Why this is here: Factory-assembled skids could reduce the costs associated with building hydrogen production facilities by as much as 60 percent.

Nel ASA of Norway unveiled a new pressurized alkaline electrolyzer platform at its Herøya manufacturing facility. The company aims to reduce the cost of green hydrogen production to below USD 1,450 per kilowatt for projects of 25 MW or larger—nearly half the current industry average of USD 3,000/kW. Nel will use factory-assembled, modular skids to cut down on onsite construction and costs by roughly 40 to 60 percent.

The new system operates at 15 to 30 bar pressure, potentially eliminating the need for external hydrogen compression and increasing efficiency. A €135 million grant from the EU Innovation Fund supports the platform’s development and industrialization. Nel plans to reach an annual production capacity of 1 gigawatt by 2027, with potential for 4 gigawatt expansion.

However, scaling up production of key components and competition from PEM electrolyzers pose challenges. The company also faces risks related to potential write-downs of existing assets and dependence on supportive government policies. Nel continues to discuss pilot deployments with customers in Norway, Germany, and the Netherlands, and work progresses toward a sustainable hydrogen economy.