Nel ASA

Regulatory Filings • Apr 20, 2022

Nel ASA: Official opening of the Herøya facility

Nel ASA: Official opening of the Herøya facility

(Oslo, April 20, 2022) With the official launch of the world´s first fully

automated electrolyser production facility, Nel is near to making green hydrogen

a true winner.

Green renewable hydrogen currently makes up just one percent of the world´s

total industrial and mobility hydrogen consumption. But Nel´s pioneering new

plant at Herøya, which is officially opened today, is at the forefront of the

race to turn one into one hundred. In addition, falling cost of green hydrogen

will unlock new application areas where green hydrogen is the best or only

option for decarbonizing.

The secret is scale-up and automation, which is lowering the unit cost of

electrode production like never before. Nel is on track to make green renewable

hydrogen as cheap, or cheaper, to produce than natural-gas-based hydrogen by

Nel is reiterating its goal of delivering green hydrogen at $1.5/kg*, and to

achieve this capex must be reduced to a quarter of today's level.

"Half of the savings we need to make will come from scale-up and increased

efficiency in production. The rest will come from the economy of scale, and from

effective industrial partnerships," says Jon André Løkke, Nel´s CEO.

"At Herøya we are producing the best alkaline electrolysers in the world. The

next step would be to industrialize our PEM technology in the US in a similar

way," says Løkke, adding that Nel is also investing a lot of capital in the

development of concepts as large as 800 MW and beyond based on 20, 100, 200 MW

building blocks.

"Our large-scale concepts allow us to optimize the overall capex and realize

synergies to reduce cost", says Løkke.

Nel has invited customers and partners for the grand opening of the new factory,

and the Norwegian Minister of Energy and Petroleum will give the official

opening speech.

"Nel's new factory at Herøya is a step in the right direction towards a future

without emissions. In a growing hydrogen market, even more electrolysers are

needed, and it will be a sign of quality that the electrolysers are marked «Made

in Norway»", says Terje Lien Aasland, Minister of Energy and Petroleum. "Norway

has competitive and competent industrial environments that can contribute to

hydrogen development. Not least at Herøya"

Nel is the leading electrolyser company in the world with a track record of

large-scale projects, making solutions that are bankable with proven performance

guarantees. In fact, the two largest electrolyser plants in Europe are currently

being finalized with Nel's technology.

This pioneering new plant at Herøya currently has 500 MW of production capacity.

With further investment, this figure can rise to 2 GW, a sizeable portion of the

10 GW of capacity Nel is targeting to reach within 2025, if required by the

market.

The presentations related to the opening event is attached to this release.

* Further details and assumptions can be found in the presentation (slide 4)

For additional information, please contact:

Jon André Løkke, CEO, +47 907 44 949

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

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. Our

roots date back to 1927, and since then, we have had a proud history of

development and continuous improvement of hydrogen technologies. Today, our

solutions cover the entire value chain: from hydrogen production technologies to

hydrogen fueling stations, enabling industries to transition to green hydrogen,

and providing fuel cell electric vehicles with the same fast fueling and long

range as fossil-fueled vehicles - without the emissions.