Nel ASA

Regulatory Filings • Jun 27, 2019

Nel ASA: Status update #5 regarding incident at Kjørbo

Nel ASA: Status update #5 regarding incident at Kjørbo

(Oslo, June 27, 2019) Nel ASA (Nel, OSE:NEL) announces new findings from safety

consultancy Gexcon regarding the incident at the Kjørbo hydrogen station on June

10, 2019. The root cause of the incident has been identified as an assembly

error of a specific plug in a hydrogen tank in the high-pressure storage unit.

Following the identification of the root cause, Nel has initiated an inspection

and integrity verification program for the high-pressure storage units with

similar plugs.

The preliminary Gexcon investigation shows that the incident started with a

hydrogen leak from a plug in one of the tanks in the high-pressure storage unit.

This leak created a mixture of hydrogen and air that ignited. The investigations

will continue into the specific source of ignition.

"Based on our investigations and analysis, we can conclude that the leak started

in a specific plug assembly in one of the tanks of the high-pressure storage

unit. We will continue the investigations to understand the possible mechanisms

of ignition," says Geirmund Vislie, Vice President Consulting of Gexcon.

Together with the authorities, Nel and Gexcon have finalized the off-site

examination of the high-pressure storage unit. With the root cause now

identified, Nel will conduct an inspection and integrity verification program

for the high-pressure storage units with similar plugs. Additionally, Nel has

initiated a program outlining new assembly, verification, and documentation

procedures.

Previous generation stations, as well as US and Korea stations, have a different

concept and design for the high-pressure storage units. As such, a leakage of

the kind experienced at Kjørbo cannot occur at these stations.

Nel will present the preliminary findings from the Gexcon investigation at press

conferences on Friday 28 June 2019; see separate announcements for more

information.

"We deeply apologize to those directly and indirectly affected by the incident.

Nel has an unwavering ambition: No incidents at sites with our technology. We

take this extremely seriously and have deployed our full resources to resolve

the situation. With the root cause now identified, we are implementing measures

to prevent this ever happening again," says Jon André Løkke, CEO of Nel, and

continues:

"Further, we're happy that the Nel core technologies were not the cause of the

leak, and that the fueling stations with different high-pressure storage designs

can be reopened soon."

Nel has published a dedicated status update and Q&A site to address the incident

at the Kjørbo hydrogen station. The site can be accessed on www.nelhydrogen.com,

and will be updated as new information becomes available.

- ENDS-

For additional information, please contact:

Bjørn Simonsen, VP IR & CC | bjorn.simonsen(at)nelhydrogen.com

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. Since its

origins in 1927, Nel has a proud history of development and continual

improvement of hydrogen plants. Our hydrogen solutions cover the entire value

chain from hydrogen production technologies to manufacturing of hydrogen fueling

stations, providing all fuel cell electric vehicles with the same fast fueling

and long range as conventional vehicles today.