Nel ASA

Report Publication Announcement • Aug 22, 2018

Nel ASA: Constructing the world's largest electrolyzer manufacturing plant

Nel ASA: Constructing the world's largest electrolyzer manufacturing plant

(Oslo, 22 August 2018) Nel ASA ("Nel") today announces the construction of the

world's largest electrolyzer plant, fully automated and able to deliver the most

efficient electrolyzers at a game changing cost. The total development will have

a name plate capacity of 360 MW/year, approximately ten times the current annual

production capacity, and the new facility will accommodate the multi-billion NOK

order from Nikola Motor Company (Nikola). The manufacturing plant will be

constructed as an extension of the current facility at Notodden, Norway, with

total planned investments of around NOK 150 million.

"We want to change the world and make renewable hydrogen mainstream, not a niche

product like it is today. As a market leader, Nel is now stepping up to make

available technology that can outcompete fossil alternatives like natural gas

reforming. This will be the world's largest electrolyzer manufacturing plant,

fully automated and designed according to lean manufacturing principles, capable

of making the most efficient electrolyzers at a cost the world has never seen

before. This expansion will also fully support the ambitions of Nikola, as well

as accommodate other customers wanting to make a significant change to their

business model," says Jon André Løkke, Chief Executive Officer of Nel.

During 2018, the Notodden facility was expanded from a production capacity of 25

to 40 MW/year, through debottlenecking and optimizing the existing plant. After

the first stage expansion, Nel has been awarded a contract for the delivery of

448 electrolyzers to Nikola as part of Nikola's development of a hydrogen

station infrastructure in the US for trucks and passenger vehicles. Under the

multi-billion NOK contract, Nel will deliver up to 1 GW of electrolysis plus

fueling equipment.

"We already have the largest and most sophisticated manufacturing plant for

hydrogen fueling equipment. Today, we confirm our leadership position also

within electrolyzer manufacturing, which will enable us to offer complete

solutions at a benchmark price. The target is clear: customers should be able to

switch from fossil to renewable solutions without compromising on cost," Løkke

says.

When fully expanded, optimized and ramped up, the total Notodden facility will

be able to deliver up to 360 MW worth of electrolyzers per year at a five-shift

operation, representing more than 160 A485 units per year.

"The expansion is fully aligned with the Nikola roadmap and we will formally

kick-off the project during the second half or 2018. The facility will be

operational early 2020, and ramp-up will be aligned with customer requirements",

says Løkke.

The expansion of the Notodden facility represents investments of approximately

NOK 150 million and will add 30 - 40 new employees.

Nel will host a presentation at 08:00 CET at Hotel Continental in Oslo on 23

August 2018. A live webcast of the presentation will also be available on the

company's website and at

http://webtv.hegnar.no/presentation.php?webcastId=92032306.

ENDS

For further information, please contact:

Jon André Løkke, CEO, Nel ASA, +47 907 44 949

Bjørn Simonsen, VP Market Development & Public Relations, +47 971 79 821

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

foundation 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.