Nel ASA: Ready To Increase Its Electrolyzer Production Capacity

Nel (Oslo: NEL) is ready to increase its electrolyzer production capacity to meet the European Union’s raised ambitions for renewable hydrogen.

Nel’s electrolyzer plant at Herøya can provide 500 MW of capacity to the market with the possibility to expand up to 2 GW.

Our brand-new and fully automated electrolyzer manufacturing facility at Herøya 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

Jon André Løkke, CEO at Nel Hydrogen

On Tuesday this week, the European Commission announced its “REPowerEU” communication which outlines the EU’s plans to make Europe independent from Russian fossil fuels well before 2030.

Among others, REPowerEU places an even stronger emphasis on the role of renewable hydrogen. The EU Hydrogen Strategy presented in May 2020 set an objective for producing 10 million tons of renewable hydrogen by 2030. With this new communication, the EU is increasing its ambition and hydrogen strategy objectives by adding 15 million tons of renewable hydrogen (10million tons to be imported and 5 million tons produced domestically in the EU). This new amount would reduce dependence on imported Russian gas by 25-50 billion cubic meters by 2030.

In addition, REPowerEU aims to bring forward the implementation of the Innovation Fund to support the switch to electrification and hydrogen. Furthermore, the European Commission has committed to assessing State aid notification for hydrogen projects as a matter of priority to assess the first Important Projects of Common European Interest (IPCEI) completed by summer.

Source: Nel ASA

Market: Hydrogen Stocks

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