Nel ASA

Investor Presentation • Jan 21, 2021

Nel CMD 2021: Launches 1.5 USD/kg target for green renewable hydrogen to outcompete fossil alternatives

Nel CMD 2021: Launches 1.5 USD/kg target for green renewable hydrogen to outcompete fossil alternatives

(Oslo, 21 January 2021) Nel ASA (Nel, OSE:NEL) today hosts the Nel Capital

Markets Day 2021, outlining the target of producing green hydrogen at USD 1.5

per kilo* by 2025, to outcompete fossil alternatives. Cost reductions through

scale-up of production to multi-GW scale, growing the organization to add

capacities and capabilities, and investing in technology for the near- and long

-term are crucial components in ensuring that Nel continues to be the global

leader in the hydrogen industry.

"Green renewable hydrogen is set to outcompete fossil alternatives, and Nel is

placed in the centre of this transition. We're today launching our target which

should enable our customers in certain markets to produce green renewable

hydrogen from a large-scale Nel facility at 1.5 USD/kg from low cost renewable

power, already within 2025. Achieving this would allow green hydrogen to start

to reach fossil parity, representing one of the most significant achievement for

zero-emission solutions and a carbon neutral planet," says Jon André Løkke,

Chief Executive Officer of Nel.

Nel's Capital Markets Day 2021 (CMD) outlines the strategy and ambitions towards

2025, addressing the current hydrogen market of 70 million tons, which, by the

Hydrogen Council, is expected to grow by 8-times by 2050, largely based on green

hydrogen.

"The hydrogen market is already large, but with only a fraction served by

electrolysis, there are significant opportunities to turn the existing market

green. In addition, we see a regulatory landslide across the globe, with the EU

and the US pledging hundreds of billions of dollars into their zero-emission

programs where hydrogen serves a vital part as the energy carrier of choice. The

growth will not only come from industrial applications, but also from

transforming the current diesel-based heavy-duty transportation to run on zero

-emission and cost-efficient green hydrogen. These developments require low-cost

electrolysis and ultra-fast fueling, both areas where Nel is the global leader,"

Løkke adds.

Taking electrolysis to GW-scale

Nel is expanding the electrolysis production to accommodate large-scale projects

by constructing a fully automated manufacturing facility at Herøya, Norway. Test

production of the first 500 MW production line will commence in the second

quarter of 2021 with start of commercial ramp-up in the third quarter 2021.

Based on the secured facility at Herøya, Nel today outlines the potential to

expand the production capacity at this facility beyond 2 GW annually.

"Herøya represents the first industrial-scale production of the most efficient

electrolysers on the market, at a game-changing low cost. The Nel team is

continuously working to drive down the cost of hydrogen, where scale-up is key,

and will continue to assess the exact timing for the next expansion step. A 2 GW

production capacity of electrolysers would represent a potential of four-to-five

million tons of CO\2 \reductions for our customers, or ten percent of the annual

CO\2 \emissions in Norway," says Jon André Løkke, and continues:

"Nel uniquely covers both PEM and alkaline technologies, each with their

respective advantages, and we will continue give them our full support and equal

priority. The technology roadmap highlights our priority on large

-scale products, continuous improvements, and lowest total cost of ownership for

our customers. The hydrogen industry will become increasingly competitive and

Nel therefore needs to continue to invest in organization, technology, and

equipment to remain in the forefront of the industry."

Price and ultra-fast fueling is key to outcompete diesel

Nel has delivered more than 110 hydrogen fueling stations (HRS), H2StationsT, in

13 different countries. The global HRS market is expected to grow by 30 percent

annually towards 2030, with 11,000 installed fueling stations, in addition to

solutions for fueling of private trailer parks, trains, ferries, etc.

"The only way to transform heavy-duty transportation is to beat diesel at the

pump. In addition to green hydrogen reaching fossil parity at production, we

have to enable fast fueling of hydrogen in a reliable and cost-efficient manner

to be able to beat fossil alternatives. Nel has a technology roadmap enabling

fueling in 10-15 minutes of a heavy duty truck to achieve a range of 1,000 km,

and we are in a good position to continue to lead the hydrogen fueling

industry," Jon André Løkke says.

Reiterates strong market outlook

Nel reiterates the confidence in the long-term potential for the industry,

supported by the "green recovery" outlined by various governmental initiatives.

The company aims to capitalize on the opportunities by leveraging on the

position as a technology front-runner, continued high focus on safety, global

presence, scalability, cost leadership, strong financing, and preferred-partner

status for industry participants.

"Large opportunities also represent major challenges for Nel going forward, as

maintaining a leadership position requires large investments, rapid expansion of

the organization, and execution of large-scale projects across the globe in an

increasingly competitive environment. In 2021 alone, we will add more than 100

new colleagues, deploy over 25% of the capital raised in 2020 in plant,

equipment, and technology development projects, and add more capacity as

required by the market. The Capital Markets Day will unveil how Nel will address

these challenges, as an emission-free future depends on green hydrogen," Løkke

concludes.

Event information for Nel Capital Markets Day 2021

Time: 08:00 - around 11:15 CET

Date: 21 January 2021Streaming details:

https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20210121_3, or

www.nelhydrogen.com/CMD

Programme and speakers:

· Jon André Løkke, CEO, The global market leader

· Erik Løkke-Øvre, VP Operations Alkaline, Taking electrolysis to GW-scale

· Filip Smeets, SVP Electrolyser, Nel electrolyser activities

· Mikael Norlander, SVP Vattenfall/Hybrit

· Jørn Rosenlund, SVP Fueling, Nel fueling station activities

· Joseph S. Cappello, CEO Iwatani Corporation of America

· Anders Søreng, CTO, Next generation technologies

· Kjell Christian Bjørnsen, CFO, Financials and ESG

· Jon André Løkke, CEO, Summary and outlook

The presentation for the CMD is enclosed and the event will be concluded with a

Q&A session. Questions can be submitted throughout the CMD.

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.

*Assumptions: Nel analysis based on electricity of 20 $/MWh, >8% cost of

capital, cost of land, civil works, installation, commissioning, building water

etc., lifetime 20 years incl. O&M cost, at 30 bar.