Nel ASA

Environmental & Social Information • Nov 25, 2021

Nel ASA: Receives purchase order for 20MW alkaline electrolyser from Ovako

Nel ASA: Receives purchase order for 20MW alkaline electrolyser from Ovako

(Oslo, 25 November 2021) Nel Hydrogen Electrolyser AS, a division of Nel ASA

(Nel, OSE: NEL), has received a purchase order for a 20MW alkaline water

electrolyser from Ovako, a leading European manufacturer of engineering steel.

The electrolyser will be installed at Ovako's existing plant in Hofors, Sweden,

the first plant in the world to use hydrogen to heat steel prior to rolling and

hot forming. The fossil-free hydrogen will replace the use of fossil propane gas

currently used in heating furnaces at the site.

"We are very excited to announce the delivery of electrolyser equipment to

Ovako, and this groundbreaking project. There is huge potential in reducing CO2

-emissions from steel-heating processes through the use of green hydrogen, there

are numerous similar sites with equally large potential for decarbonization

across Europe and the rest of the world. We look forward to working with Ovako

and its partners to further develop fossil-free steel production in all the

sites where this will be relevant" says Jon André Løkke, CEO at Nel.

Nel has received a purchase order for a 20MW alkaline electrolyser system from

Ovako, a leading European manufacturer of engineering steel. The purchase order

has a contract value of approximately EUR 11 million and the equipment is

expected to be delivered at the end of 2022, with the first hydrogen production

in 2023. The electrolyser will produce oxygen and hydrogen to be used in Ovako's

steel-heating process and is a major step towards zero-carbon emission steel

production The conversion to hydrogen will enable Ovako to reduce its CO2

emissions for steel production in Hofors by 50 percent from already low levels

"In June we announced our collaboration with the Volvo Group, Hitachi Energy, H2

Green Steel and Nel Hydrogen with the purpose to invest in fossil-free hydrogen

in Hofors. An investment that also got the support from the Swedish Energy

Agency. We are now very pleased to have reached this important milestone of the

project. The electrolyser technology will enable us to eliminate CO2 for heating

steel before rolling", says Rickard Qvarfort, President Business unit Hofors.

Ovako is a leading European manufacturer of engineering steel for customers e.g.

in the bearing, transportation and manufacturing industries, and is a subsidiary

of Sanyo Special Steel and part of the Nippon Steel Corporation Group. The

company has geographical presence in Europe, North America and Asia, and a steel

product line that includes niche products and customized solutions. The carbon

footprint of Ovako's steel products is a full 80 percent lower than the global

average.

Reference is made to the press release from June 22, 2021: Nel ASA: Joins

hydrogen initiative with leading players to enable fossil-free steel

rolling/milling. (https://nelhydrogen.com/press-release/nel-asa-joins-hydrogen

-initiative-with-leading-players-to-enable-fossil-free-steel-rolling-milling/)

ENDS

For further 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.