Nel ASA

Regulatory Filings • Apr 4, 2016

NEL ASA: Developing the world´s largest factory for hydrogen refuelling stations

NEL ASA: Developing the world´s largest factory for hydrogen refuelling stations

(Oslo, 4 April 2016) H2 Logic A/S (H2 Logic), a subsidiary of NEL ASA, has

entered into a contract for the purchase of a facility in Herning, Denmark for

the development of a new large-scale production plant for hydrogen refuelling

stations. The factory will have an annual capacity to manufacture hydrogen

refuelling stations sufficient to support 200 000 new Fuel Cell Electric

Vehicles (FCEV) annually.

With a total investment of NOK ~85 million, including contingency, NEL intends

to convert the facility into a state-of-the-art volume production facility for

refuelling stations based on lean manufacturing principles. When ramp-up and

plant optimization is complete, the facility will have a name-plate production

capacity of up to 300 refuelling stations per year. This will ensure further

product improvements over time as well as other scale benefits.

Global leading car manufacturers are introducing FCEVs into more and more

markets and plan for significant growth in volumes towards 2020 and beyond. This

requires an adequate capacity for manufacturing of hydrogen refuelling stations

to support a widespread roll-out of hydrogen infrastructure.

The new production facility in Denmark will be prepared for the next generation

refuelling technology (H2Station®) that will offer major break-throughs in areas

like increased refuelling capacity and performance, reduced footprint as well as

potential for significant cost reductions. The new H2Station® technology has

been designed for lean volume manufacturing which is essential to achieve

sufficient scale benefits.

"In contrast to many others, NEL is approaching the refuelling station business

in a mature and professional way. Even if a refuelling station is relatively

complex, it is just another piece of equipment that has to have a small

footprint, high uptime, and low cost of ownership. This can only be achieved

through modular design, standardization and volume production based on lean

manufacturing principles - this is how we will add value to our customers." says

Jon André Løkke, chief executive officer of NEL.

Since 2011, H2 Logic has gained experience with volume manufacturing of hydrogen

refuelling stations, however, at a smaller scale. This has resulted in a market

share in Europe of more than 30%. With this new production facility, H2 Logic

will take the production concept to the next level and create a benchmark

facility not yet seen anywhere in the world.

"With this investment, our customers will clearly see that NEL not only can

support their immediate need for refuelling stations, but also will remain a

reliable and attractive partner for the long-term.", says Løkke.

H2 Logic will start to relocate to the new facility in the second half of 2016,

and will complete the rebuild and relocation during 2017. The company has also

secured 9000 M2 of expansion area adjacent to the Herning facility.

See enclosed press release for picture of the facility.

For additional information, please contact:

Jon André Løkke, CEO, +47 90 74 49 49

Bjørn Simonsen, market development and public relations director, + 47 97 17 98

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About NEL

NEL ASA is the first dedicated hydrogen company on the Oslo Stock Exchange.

Since its foundation in 1927, NEL Hydrogen has a proud history of development

and continual improvement of hydrogen plants. NEL is global a supplier of

hydrogen solutions, covering the entire value chain from hydrogen production

technologies to hydrogen refuelling stations for fuel cell electric vehicles. H2

Logic A/S is a leading manufacturer of H2Station® hydrogen refuelling stations

that provides fuel cell electric vehicles with the same fast fuelling and long

range as conventional vehicles today. www.nel-asa.com

About H2 Logic A/S

H2 Logic A/S is a leading manufacturer of H2Station® hydrogen refuelling

stations that provides fuel cell electric vehicles with the same fast fuelling

and long range as conventional vehicles today. Since incorporation in 2003 H2

Logic has invested significantly in R&D that has brought H2Station to a level

where products are offered for the early market for roll-out of larger networks

of hydrogen refuelling stations. H2 Logic is part of NEL ASA listed on the Oslo

Stock Exchange. www.h2logic.com