Nel ASA

M&A Activity • Sep 26, 2023

Nel ASA: Nel has selected Plymouth in Michigan for its next gigafactory

Nel ASA: Nel has selected Plymouth in Michigan for its next gigafactory

(September 26, 2023 - Oslo, Norway) Nel has selected Plymouth Charter Township,

a suburb of Detroit, Michigan, as the location for its next gigafactory. Fully

developed, the factory will be among the world's largest electrode manufacturing

facilities, with a total annual capacity of 4 GW Alkaline and PEM technology.

"Plymouth Charter Township is an ideal location for Nel. Here, we have access to

a highly educated workforce, universities and research institutions, and we are

close to our collaborating partner, General Motors. In addition, the Government

and the authorities of Michigan have provided a very attractive financial

support package for us," says Nel's CEO, Håkon Volldal.

The Michigan Strategic Fund (MSF) has today decided to support the project with

a USD 10 million Michigan Business Development grant. The MSF board also

approved a 15-year, 100% State Essential Services Assessment (SESA) Exemption

Request, valued at up to USD 6.25 million to support the project. Nel has so far

secured more than USD 50 million in support for its Michigan site. Pending

approval of additional state and federal applications, this amount could

increase to around USD 150 million.

"We are thrilled to welcome Nel Hydrogen and its new gigafactory to Southeast

Michigan," says the Governor of Michigan, Gretchen Whitmer.

"This investment will bring good-paying jobs to the region and build on our

leadership in cars, chips, and clean energy. We know the best manufacturing in

the world happens right here in our state, and we were proud to share our vision

for a clean energy future during our economic mission to Europe earlier this

year. We will continue to let the world know about our state's attractive

business climate, talented workforce, and commitment to clean hydrogen

development as we work to bring these transformational investments home to

Michigan," says Whitmer.

The manufacturing facility in Plymouth will build on Nel's fully automated

electrolyser concept, which the company has developed at its production facility

in Herøya, Norway. Similarly, the company's expansion of the facility in

Wallingford will play a critical role in creating a blueprint for scaling up the

production of Nel's PEM electrolysers.

The factory will be built in steps to match supply with demand. A final

investment decision for constructing this facility has not been made yet.

ENDS

For additional information, please contact:

Kjell Christian Bjørnsen, CFO, +47 917 02?097

Wilhelm Flinder, Head of Investor Relations, +47 936 11 350

Lars Nermoen, Head of Communication, +47 902 40 153

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.