Nel ASA

Environmental & Social Information • Apr 25, 2019

Nel ASA: Receives 4.5 MW electrolyzer purchase order for fossil free steel production

Nel ASA: Receives 4.5 MW electrolyzer purchase order for fossil free steel production

(Oslo, 25 April 2019) Nel Hydrogen Electrolyser, a subsidiary of Nel ASA (Nel,

OSE:NEL), has received a purchase order for a 4.5 megawatt alkaline electrolyzer

solution from Hybrit Development AB a joint venture owned by SSAB, LKAB and

Vattenfall. The solution will be used for a pilot which aim is to create a

fossil free steel production for the future.

"Being chosen to supply electrolyzers to the first phase of the HYBRIT project

is a true honor. It's encouraging to see the partners behind HYBRIT leading the

way in the effort to decarbonize the steel industry; one of the most CO2

-intensive industries globally today. In this important benchmark project, the

HYBRIT-partners are determined to change the reliance on coal and move to a

renewable, fossil free future," says Henning Langås, Sales Director Alkaline

Electrolyzers.

The pilot plant for fossil free steel production will operate in Luleå, Sweden

from 2021 - 2024, followed by a demonstration phase, with target of full-scale

implementation by 2035. The parties have decided not to disclose the value of

the contract for the pilot plant.

HYBRIT (Hydrogen Breakthrough Ironmaking Technology) is an initiative between

SSAB, LKAB, and Vattenfall, with the aim to develop the world's first fossil

free ore-based steelmaking technology, where coal will be replaced by fossil

-free hydrogen. The steel industry is currently one of the highest carbon

emitting industries, accounting for up to 7% of global CO2-emissions. If

successful, the HYBRIT project can lead to a reduction of Sweden's CO2 emissions

by 10% and will consume approximately 15 TWh of fossil-free electricity.

ENDS

For additional information, please contact:

Jon André Løkke, CEO, +47 907 44 949

Bjørn Simonsen, VP Investor Relations & Corporate Communication, +47 971 79 821

About Nel Hydrogen | www.nelhydrogen.com

Nel Hydrogen 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.

About Hybrit Development and HYBRIT initiative |

www.hybritdevelopment.com (http://www.nelhydrogen.com/)

Hybrit Development AB is a joint venture between the steel manufacturer SSAB,

the mining company LKAB and the energy company Vattenfall. The objective of the

joint-venture is to develop the world's first fossil-free, ore-based steelmaking

process. The project started during the spring of 2016 and the goal is to have

an industrial process in place by 2035. The byproduct of using fossil-free

electricity and hydrogen in steelmaking, instead of coke and coal, will be water

instead of carbon dioxide. The initiative has the potential to reduce Sweden's

total carbon dioxide emissions by 10 percent. The HYBRIT initiative has been

granted financial support from the Swedish Energy Agency. Research Project 1

(RP1) is a comprehensive collaboration among industry, universities and research

institutes aimed at ascertaining fossil-free steps in the energy, mine, iron and

steel value chain.