Nel ASA

Legal Proceedings Report • Apr 3, 2018

Nel ASA: Regarding H2V power-to-gas project

Nel ASA: Regarding H2V power-to-gas project

(Oslo, 3 April 2018) Nel ASA (Nel, OSE: NEL) announced today the decision to

halt further work under the agreement with H2V PRODUCT ("H2V"), as H2V has made

limited progress and has been unable to secure project financing. Nel

experiences a significant global interest for hydrogen solutions across

industries and will deploy its resources on other high-value projects. The

discontinuation of the H2V project will not affect the reported order backlog of

Nel.

"We are disappointed by the lack of progress and non-conclusive financing for

the project, and we have therefore decided to utilize our business development-,

engineering- and production capabilities on other projects" says Jon André

Løkke, CEO of Nel.

Nel has been promised final agreements and a pre-payment for many months.

However, H2V has not been able to deliver according to agreed intentions and

terms. In the notice to H2V, Nel has among other things emphasised its rights

related to intellectual property. Consequently, any future initiative by H2V

related to injecting hydrogen into the natural gas pipelines in France will need

to be developed without the use of any information acquired through the process

with Nel.

"We still believe in the power-to-gas market in Europe, and will continue to

work with all the various initiatives within this field. In addition, Nel

experiences a high interest for hydrogen solutions, as can be seen from the

announcement earlier today, and we therefore choose to focus our limited

resources on projects with good traction," Løkke concludes.

Nel´s order backlog of NOK 465 million at the end of 2017 will not be affected

by the discontinuation of the H2V project as the reported backlog only includes

firm purchase orders. Nel reiterates that the company continues to evaluate

significant expansions at the facility in Notodden to be able to deliver larger

volumes and further reduce production costs.

ENDS

For further information, please contact:

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

Bjørn Simonsen, VP Market Development and Public Relations, Nel ASA, +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 fuel cell electric vehicles with the same fast fueling and

long range as conventional vehicles.