THE KJØRBO INCIDENT
Jon André Løkke CEO, Nel ASA
Press conference June 28, 2019
- Hydrogen technology company
- Roots going back to technology developed by Norsk Hydro in 1927
- World's largest electrolyzer manufacturer with more than 3500 units delivered in over 80 countries since 1927
- World leading manufacturer of hydrogen fueling stations; approximately 50 stations delivered to 9 countries
Alkaline and PEM electrolyzers
Converting water and electricity to hydrogen and oxygen – for industry and energy purposes
Compact hydrogen fueling stations
Hydrogen fueling stations capable of fueling any kind of vehicle. World's most compact – simple to integrate with other fuels and standardized
Kjørbo incident
World-leading hydrogen technology provider
Background
Wallingford, USA
PEM electrolyzers
Notodden, Norway
Alkaline electrolyzers
Herning, Denmark Hydrogen refuelling stations
Clear ambition: no accidents at sites with Nel technology Background
All hydrogen solutions from Nel are certified by third parties and comply with all relevant international standards, including directives for HRS in Europe below:
- Mechanical and Safety Instrumented System IEC61511
- DIRECTIVE 2014/68/EU Safety of pressure vessel equipment and material
- DIRECTIVE 2014/34/EU Equipment used in potentially explosive atmospheres (ATEX)
- DIRECTIVE 2014/30/EU Electromagnetic compatibility
- DIRECTIVE 2014/35/EU Low-voltage electrical equipment
- DIRECTIVE 2006/42/EC Machinery Directive
- ISO/TS 19880-1:2016 Gaseous hydrogen -- Fueling stations -- Part 1: General requirements
- SAE J2601_201407 Fueling Protocols for Light Duty Gaseous Hydrogen Surface Vehicles
The Kjørbo site Kjørbo incident Background
- Opened 2016
- Owned by Uno-X Hydrogen
- JV between Uno-X, Nel, and Nippon Gases (formerly Praxair)
- •Nel H2Station® with on-site hydrogen production from electrolysis
- Product family: CAR-200 Europe
Background
Background
Nel's first line response: immediately mobilize all available resources Background
- Assembled crisis management team, Norway and Denmark
- Coordinated with Uno-X team
- Technical support for emergency response services
- Customer update: Recommended that 10 stations in same product family be put on temporary stand-by
- Nel technical experts flown in from Denmark overnight
- Close cooperation with authorities
- Safety consultancy Gexcon retained, along with Bureau Veritas and SINTEF
- Interfaced closely with customers, suppliers, car vendors, business partners and other stakeholders
- Updated market as information on incident became available
- Started planning of short-term and long-term actions
Preliminary conclusions
Root cause
Non-core Nel technology
- Assembly error in high-pressure storage unit
- Unit consists of steel tanks and other components by third parties, some of which are designed by Nel
Process and actions
Process moving forward
Process and actions
Plug design, unique to Europe Kjørbo incident
Certified by third parties
US stations European stations Korean stations
Number of stations:
- Norway 3
- Iceland 3
- Germany 3
- ASKO 1
Analysis involving Gexcon, SINTEF, and Bureau Veritas
Investigation overview
- Materials OK
- Magnetic particle inspection
- Penetrant testing
- Verification of materials
- Design OK
- 1,000,000 cycle accelerated test
- Assembly NOT OK
- Bolt analysis
- Physical gap
- Opening torque
Plug assembly analysis & testing
Actions to be taken by Nel
Process and actions
With verified plug solution
- Inspect all high-pressure storage units in Europe
- Check/re-torque all plugs
Updated routines for assembly of high-pressure storage units
- Introduce new safety system/routines (aerospace standard)
- Torque verification, double witness and documentation/marking
Improved leak detection
2
1
3
4
- Software update to increase leak detection frequency
- Consider additional detection hardware/modifications
Ignition control measures (site dependent)
- Smooth surface/no gravel around high-pressure storage unit
- Additional ventilation in compound & higher extent of EX-equipment
Timeline for various market segments
Process and actions
| Segment |
Action
Check site |
Action
Update site |
Action
Component
update |
Action
Root cause
correction |
Action
Green light from
Nel to operators |
| CAR-100 |
✔️ |
|
|
|
First half July |
| CAR-200 US |
✔️ |
✔️ |
|
|
July |
| CAR-200 Korea |
✔️ |
✔️ |
|
|
July |
CAR-200 Europe
incl. Norway |
✔️ |
✔️ |
✔️ |
✔️ |
Third quarter |
Process and actions
Nel's priority: Identify root cause and making sure stations are safe to reopen as soon as possible
- Nel has deployed all relevant resources for the Kjørbo incident
- Will entail extraordinary costs during 2019; too early to conclude on net financial implications
- The costs are related to investigations, stations inspections, site clean-up, station replacement and other extraordinary costs
- The final desicion and extent of insurance coverage and other issues may impact the final costs
- Further details to be published along with Q2 report on August 28
Investor inquiries: Bjørn Simonsen VP Investor Relations & Corporate Communication +(47) 971 79 821 | [email protected]
Summary
Hydrogen & safety
Summary
- Hydrogen has a high energy density and can be hazardous, just like gasoline, diesel, natural gas, and batteries
- Hydrogen has been used for industrial purposes for nearly a century
- Around 150,000 tons of hydrogen is being used every day around the globe in various applications
- Hydrogen is crucial for decarbonizing industry as well as transportation
- Together with the rest of the hydrogen industry, Nel will implement key learnings from the Kjørbo incident to further improve on already high safety standards
Our unwavering ambition: No accidents at sites with Nel technology Summary
Kjørbo was a very serious incident
Strong response by emergency services and hydrogen community
Root cause of leak determined
Short-term and long-term actions started immediately
Hydrogen remains a key energy carrier for the future
Q&A