Norwegian electrolyser manufacturer Nel ASA has secured a grant of up to €135 million (approximately $146 million) from the EU Innovation Fund to facilitate a phased expansion of production for its next-generation pressurized alkaline technology, which is currently in the prototype stage.
The initial expansion aims for an annual capacity between 1 GW and 2 GW. The support from the EU will be aligned with Nel's own investments, which target a total capacity of up to 4 GW for pressurized electrolyser equipment in Norway, according to a press statement released on Tuesday.
This innovative technology, under development for over five years, is currently being prototyped and has shown promising results. The potential industrialization will occur at Nel's existing facility in Heroya.
The final investment decision (FID) for the project will depend on successful testing outcomes from the prototype and planned pilot stages, as well as the market acceptance of the new technology.
Nel's initiative is among 85 projects selected by the European Commission (EC) to receive a share of a total of €4.8 billion from the Innovation Fund. The company's grant application was backed by Enova SF, the Norwegian national contact point for the EU Innovation Fund.
As of June, Nel has refocused its efforts solely on developing and delivering electrolysers for renewable hydrogen production following the spin-off of its former Fueling division. The company is actively working to enhance its existing PEM and atmospheric alkaline electrolysers while investing in next-generation pressurized alkaline and PEM technologies. Nel's next-generation pressurized alkaline technology represents “a fundamental redesign” of its current offerings, promising significantly improved Levelized Cost of Hydrogen (LCOH).
