Nel ASA

M&A Activity • Dec 12, 2023

OSE-FILING December 12, 2023 – Oslo, Norway

Nel ASA: HyCC has cancelled the 40 MW purchase order due to market conditions

(December 12, 2023 - Oslo, Norway) Reference made to the announcement published February 6, 2023, where Nel Hydrogen Electrolyser AS, a subsidiary of Nel ASA (Nel, OSE:NEL), signed a 40 MW contract with HyCC. The client has postponed its H² eron project to being realised in 2028 at the earliest and has therefore cancelled the purchase order.

The cancellation is in accordance with the initial agreement for this project where production was communicated to start in Q4 2025. Nel has not booked any revenue for the project, and the cancellation will have a negative backlog impact of about EUR 12 million.

HyCC and Nel are planning to continue their partnership and are in talks to use Nel's alkaline electrolysers in the new setup for the H2eron project, with a capacity of up to 50 MW.

"The regulatory framework is taking more time and current market conditions are not yet at the levels required to execute the project at the desired scale. In the interest of the H² eron project we are unfortunately forced to adjust the setup and schedule accordingly", says Marcel Galjee, Managing Director of HyCC.

ENDS

For additional information, please contact: Kjell Christian Bjørnsen, CFO, +47 917 02 097 Wilhelm Flinder, Head of Investor Relations, +47 936 11 350

About Nel ASA | www.nelhydrogen.com

Nel has a history tracing back to 1927 and is today a leading pure play hydrogen technology company with a global presence. The company specializes in electrolyser technology for production of renewable hydrogen, and hydrogen fueling equipment for road-going vehicles. Nel's product offerings are key enablers for a green hydrogen economy, making it possible to decarbonize various industries such as transportation, refining, steel, and ammonia.

This information is subject to a duty of disclosure pursuant to Section 5-12 of the Norwegian Securities Trading Act. This information was issued as inside information pursuant to the EU Market Abuse Regulation, and was published by Wilhelm Finder, Head of Investor Relations, at NEL ASA on the date and time provided.