Nel ASA

Regulatory Filings • Oct 30, 2020

Nel signs LoI with Statkraft for a green hydrogen project with up to 50MW of electrolyser capacity

Nel signs LoI with Statkraft for a green hydrogen project with up to 50MW of electrolyser capacity

(30 October, 2020, Oslo) Nel Hydrogen Electrolyser AS, a subsidiary of ASA (Nel,

OSE:NEL) and Statkraft AS (Statkraft) have signed a letter of intent (LoI) for

the delivery of 40 - 50 MW of alkaline electrolysers to support green steel

production by Celsa Armeringsstål AS (Celsa) at Mo Industripark in Norway.

"Through our electrolyser scale-up program we have not only identified ways to

manufacture our alkaline electrolysers more efficiently, we have also identified

a number of measures which can be implemented to improve the electrolyser

performance even beyond today's industry leading standard. There is no better

way of demonstrating such improvements than through realizing an actual large

-scale project, and we are very proud that the leading energy company Statkraft

wants to work together with us on this," says Jon André Løkke, CEO of Nel.

Nel and Statkraft have signed a Letter of Intent to develop a large-scale

electrolyser plant of 40-50MW, with superior performance compared to today's

solutions. The green hydrogen produced by the plant will be used in a production

process of steel reinforcing products as an alternative to fossil fuels, and

hence lower the carbon footprint of the process.

"We're happy to be involved in such an important project, where we can start

building hydrogen as an important future business-line for Norway and Statkraft

and cut CO\2\-emissions from the Norwegian industry significantly, by utilizing

our renewable power. As a development project, it will require support for

technology development and commercialisation to be realised. The project is well

positioned for the so-called 'Important projects of common European interest'

program in the EU, and will support Norway's hydrogen efforts going forward,"

says Bjørn Holsen, Head of New Business at Statkraft

Statkraft is together with Celsa and Mo Industry park planning to establish a

complete value chain for green hydrogen for industrial use in a high temperature

process where the end-product is reinforced steel. Today, this process leads to

annual CO2-emissions of approximately 100,000 tons/year, and through introducing

green hydrogen in the process, emissions can potentially be reduced by 60%. The

project is targeted for operation by end of 2023. The parties have also

identified a number of other industrial opportunities for green hydrogen in the

Industry park, and have the intention to increase the electrolyser capacity in a

number of steps towards 2030.

ENDS

For further information, please contact:

Jon André Løkke, CEO, +47 907 44 949

Kjell Christian Bjørnsen, CFO, +47 917 02 097

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. Our

roots date back to 1927, and since then, we have had a proud history of

development and continuous improvement of hydrogen technologies. Today, our

solutions cover the entire value chain: from hydrogen production technologies to

hydrogen fueling stations, enabling industries to transition to green hydrogen,

and providing fuel cell electric vehicles with the same fast fueling and long

range as fossil-fueled vehicles - without the emissions.