Nel ASA

Regulatory Filings • May 5, 2022

Nel ASA: Towards improved framework conditions for electrolyser manufacturers in the EU

Nel ASA: Towards improved framework conditions for electrolyser manufacturers in the EU

(Oslo, 5 May 2022) The European Commission and the European electrolyser

industry have signed a joint declaration containing a wide range of initiatives

to improve framework conditions for electrolyser manufacturers in Europe.

The joint declaration was signed by EU Commissioner for Internal Market, Thierry

Breton, as well as Nel and other representatives from the electrolyser industry

at the Electrolyser Summit in Brussels earlier today.

"Clean hydrogen is indispensable to reduce industrial carbon emissions and

contribute to our energy independence from Russia. We have no time to lose,

which is why this European electrolyser summit is so opportune. Today, industry

agreed to a tenfold increase in electrolyser manufacturing capacities in Europe.

The Commission will support this important industrial upscaling for an

industrial leadership in the clean energy technologies of the future", says EU

Commissioner for Internal Market, Thierry Breton.

The joint declaration provides a solid foundation for the European Union's

ambitious 'Hydrogen Accelerator', that will be a part of the EUs plan to make

Europe independent from Russian fossil fuels. This plan, which is called

RePowerEU is expected to be communicated by the European Commission on 18 May.

"Demand for green hydrogen is growing extremely fast and we are glad to see the

willingness from the European Commission to help us meet our common goals for

green hydrogen production and the upscaling of electrolyser manufacturing

capacities", says CEO of Nel, Jon André Løkke.

In March this year the European Commission announced its increased ambitions to

double the previous EU renewable hydrogen target to 10 million tons of annual

domestic production, plus an additional 10 million tons of annual hydrogen

imports.

According to industry estimates, reaching this target will require an installed

electrolyser capacity of 90 - 100 GW in Europe, depending on utilization factors

and efficiency rates. Consequently, the electrolyser production capacity must be

scaled-up significantly.

"The electrolyser manufacturing capacity must be scaled-up significantly to meet

the expected European demand for renewable hydrogen. There is no Hydrogen

Accelerator without an acceleration in electrolyser manufacturing. There is no

acceleration in electrolyser manufacturing in Europe without adequate regulatory

and financial support. Cost-effective and scalable solutions are key

qualification criteria. It's time to walk the talk. We are looking forward to 18

May, when the Commission is expected to present its RePowerEU plan," says Løkke.

A couple of weeks ago Nel officially opened its new and fully automated

electrolyser facility at Herøya in Norway. Currently the factory has a

production capacity of 500 MW, which can be increased to 2 GW.

The company has previously communicated an ambition to reach 10 GW production

capacity in Europe, Asia and the US within 2025, if required by the market. The

company has also stated that it will start a site selection process for

additional production capacity in Europe.

Please find the joint declaration and the EU Commission's press release in the

following links.

- Electrolyser manufacturing capacities in the EU

(europa.eu) (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_2829)

- Joint Declaration (https://ec.europa.eu/docsroom/documents/50014)

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 is a global, dedicated hydrogen company, delivering optimal solutions to

produce, store and distribute hydrogen from renewable energy. We serve

industries, energy and gas companies with leading hydrogen technology. Since its

origins in 1927, Nel has a proud history of development and continual

improvement of hydrogen plants. Our hydrogen solutions cover the entire value

chain from hydrogen production technologies to manufacturing of hydrogen fueling

stations, providing all fuel cell electric vehicles with the same fast fueling

and long range as conventional vehicles today.