Nel ASA

Regulatory Filings • Jun 28, 2018

Nel ASA: Awarded multi-billion NOK electrolyzer and fueling station contract by Nikola

Nel ASA: Awarded multi-billion NOK electrolyzer and fueling station contract by Nikola

(Oslo, 28 June 2018) Nel ASA (Nel, OSE: NEL) has been awarded a contract for

delivery of 448 electrolyzers and associated fueling equipment to Nikola Motor

Company (Nikola) as part of Nikola's development of a hydrogen station

infrastructure in the US for truck and passenger vehicles. Under the multi

-billion NOK contract, to be deployed from 2020, Nel will deliver up to 1 GW of

electrolysis plus fueling equipment. The company reiterates a potential major

expansion of the production capacity at Notodden to accommodate the contract

order.

"We are immensely proud of announcing this 1 GW electrolyzer contract with

Nikola for the exclusive delivery of 448 electrolyzers and supporting fueling

equipment as part of their groundbreaking development of a hydrogen station

infrastructure across the US. The multi-billion NOK contract is by far the

largest electrolyzer and fueling station contract ever awarded. It will secure

fast and cost efficient fueling of Nikola's fleet of hydrogen trucks, delivering

support to major customers like Anheuser-Busch, as well as a growing fleet of

Fuel Cell Electric Vehicles. We look forward to working with Nikola on

developing the world's largest, most efficient network of low-cost hydrogen

production and fueling sites," says Jon André Løkke, Chief Executive Officer of

Nel.

Nikola and Nel announced late 2017 an exclusive partnership aimed at developing

low-cost, renewable hydrogen production and fueling sites as part of a

nationwide network of hydrogen stations, supporting Nikola's vision of replacing

the current fleet of diesel trucks in America with zero-emission hydrogen

trucks.

"The future for zero-emission trucks has never been brighter. Nel's

electrolyzers are efficient and reliable, making them a natural backbone for our

station infrastructure. We'll begin fleet testing the Nikola hydrogen electric

semi-trucks in 2019. The first two stations will be installed in Arizona and

California depending on permit timelines. The next 28 stations will be installed

on each route outside of Anheuser-Busch's Breweries or their distribution

centers. Each station will produce 700 bar and will be compatible with class 8

trucks and consumer cars. This is an incredibly exciting time and we have now

contractually set in motion the largest network of hydrogen in the world," says

Trevor Milton, Chief Executive Officer of Nikola.

Under the contract, Nel will deliver 448 electrolyzers and supporting fueling

equipment to Nikola, the rollout is expected to start in 2020. The contract

includes an initial order for a pre-engineering package of around USD 1.5

million, where Nel will develop a station design, including electrolyzers,

specifically made for fast fueling of Nikola trucks. Nel will continue to work,

in collaboration with Nikola, to finalize the detailed station design and other

technology elements to be deployed for the commercial stations. Nikola has

already placed an initial order amounting to more than USD 9 million for two

demo-stations for which delivery will commence towards the end of 2018.

Early in May, Nikola announced that Anheuser-Busch has placed an order for up to

800 Hydrogen-Electric Powered Semi-Trucks. To support the Anheuser-Busch fleet

of trucks, Nikola and Nel would need to deploy around 28 stations. This order

volume alone will have a revenue potential for Nel of more than USD 500 million.

The electrolyzer stacks will be manufactured in Norway and fueling equipment in

Denmark. However, other supporting components and sub-systems will be sourced

locally in the US to reduce costs and minimize transportation needs.

"We're looking at a total contract volume which is many times higher than the

current annual production capacity at Notodden. While we have not reached any

conclusions on an expansion to accommodate the order, we want to reiterate our

plans to develop the Notodden facility into the world's largest electrolyzer

stack manufacturing facility, aiming at a cost reduction of around 40 percent,"

says Løkke.

ENDS

For additional information, please contact:

Jon André Løkke, CEO, +47 907 44 949

Colleen Robar, +1 313-207-5960, crobar@robarpr.com (Nikola)

About Nikola Motor Company | www.nikolamotor.com

Nikola Motor Company designs and manufactures electric vehicles, vehicle

components, energy storage systems, and electric vehicle drivetrains. NMC is led

by its visionary CEO Trevor Milton (twitter: @nikolatrevor), who has assembled

one of the most talented teams in the country to bring the Nikola products to

market. The company is privately-held. For more information, visit

nikolamotor.com or Twitter: @nikolamotor.

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 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.