Nel ASA

Regulatory Filings • Mar 9, 2022

Nel ASA: Ready to step up production capacity

Nel ASA: Ready to step up production capacity

Nel is ready to increase its electrolyser production capacity to meet the

European Union's raised ambitions for renewable hydrogen.

"We are ready to add the electrolyser production capacity needed in Europe and

abroad when required by the market", says Nel's CEO Jon André Løkke.

"Our brand-new and fully automated electrolyser manufacturing facility at Herøya

is already producing at tree shifts. We are reaching new production records

every week and will start a site selection process for additional production

capacity in Europe", says Løkke.

Nel's electrolyser plant at Herøya can provide 500 MW of capacity to the market

with the possibility to expand up to 2 GW.

On Tuesday this week, the European Commission announced its

"REPowerEU (https://ec.europa.eu/commission/presscorner/detail/en/IP_22_1511)"

communication which outlines the EU's plans to make Europe independent from

Russian fossil fuels well before 2030. The communication also highlights a

series of measures to respond to soaring energy prices in Europe.

Raised ambitions

Among other, REPowerEU places an even stronger emphasis on the role of renewable

hydrogen. The EU Hydrogen

Strategy (https://ec.europa.eu/energy/sites/ener/files/hydrogen_strategy.pdf)

presented in May 2020 set an objective for the production of 10 million tons of

renewable hydrogen by 2020. With this new communication, the EU is increasing

its ambition and hydrogen strategy objectives by adding a further 15 million

tons of renewable hydrogen (10million tons to be imported and 5 million tons

produced domestically in the EU). This new amount would contribute to reducing

dependence on imported Russian gas by 25-50 billion cubic metres by 2030.

In addition, REPowerEU aims to bring forward the implementation of the

Innovation Fund in order to support the switch to electrification and hydrogen,

including through an EU-wide scheme for carbon contracts for difference, and to

enhance the EU's manufacturing capabilities for innovative zero and low carbon

equipment, such as electrolysers. Furthermore, the European Commission has

committed to assessing State aid notification for hydrogen projects as a matter

of priority with the aim to have the assessment of the first Important Projects

of Common European Interest (IPCEI) completed by summer.

"We are committed and ready to deliver on the promise to help make Europe the

first climate-neutral continent in the world. It's time to turn Europe's

hydrogen ambition into a reality. We need a clear and predictable regulatory

framework which provides certainty and appropriate incentives for renewable

hydrogen technologies", says Løkke.

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.