Nel ASA

Regulatory Filings • Jun 12, 2024

Nel ASA: A fully dedicated electrolyser company

Nel ASA: A fully dedicated electrolyser company

(June 12, 2024 - Oslo, Norway) Nel ASA (Nel, OSE:NEL). As of today, Nel is

solely dedicated to developing and delivering world-class electrolysers to

produce renewable hydrogen.

"Nel has almost a century of experience developing electrolysers and has

installed thousands of systems around the world. Building on our unparalleled

track record, we will, from now on, spend one hundred percent of our capacity

and hydrogen know-how on developing and delivering the most reliable and energy

-efficient electrolysers," says Nel's CEO, Håkon Volldal.

Nel's CEO says this on the same day Nel's former Fueling division was spun out

and listed on the Oslo Stock Exchange as Cavendish Hydrogen. Volldal sends his

best wishes to his former colleagues, who now focus on developing hydrogen

fueling equipment for heavy-duty vehicles.

"Cavendish has a solid starting point with lots of relevant experience from the

light-duty fueling market, a diverse and strong customer base, a competent

organization and now also a dedicated board of directors. I am convinced they

can succeed, and I wish them the best of luck," says Volldal.

After the spin-off, Nel will have approximately 450 employees in Norway and the

US. These resources will dedicate all their time to delivering on Nels's

ambition to offer the most energy-efficient and reliable electrolyzers in the

industry at scale.

Accelerated development of next-generation electrolysers

In addition to further developing and improving its existing PEM and atmospheric

alkaline electrolysers, Nel is investing heavily in next-generation pressurized

alkaline and PEM technologies. The development of next-generation PEM

electrolysers, a collaboration utilizing the deep hydrogen knowledge in Nel and

General Motors' R&D departments, is progressing rapidly. At the same time, Nel's

game-changing redesign of the pressurized alkaline concept has reached the

prototype stage. Nel has also secured funding from the US Department of Energy

to further develop its AEM electrolyser technology.

Strategic partnerships with leading industry players

Recently, Nel signed a technology licensing agreement with India's largest

private corporation, Reliance Industries. Through this agreement, Nel will gain

access to a rapidly growing market and cater to Reliance's captive demand for

electrolysers globally. Nel has also partnered with a handful of Engineering

Procurement and Construction (EPC) companies to offer turnkey 100 MW building

blocks. These will be available on the market shortly.

Gigawatts of annual production capacity

During the last year, Nel has taken large steps to prepare the company for

further growth. The annual production capacity at the fully automated electrode

manufacturing facility in Herøya, Norway, has doubled from 500 MW to 1 GW. In

addition, Nel is scaling up its annual production capacity to 500 MW at its PEM

manufacturing facility in Wallingford, Connecticut. As in Herøya, all major

production steps at the Wallingford facility will be automated. Moreover,

several production processes previously carried out by subcontractors will be

insourced and optimized. The company has also secured about USD 170 million in

support from the US Department of Energy and the state of Michigan for its

planned gigafactory in Detroit, where Nel will manufacture next-generation PEM

and pressurized alkaline electrolysers.

The company's first quarter 2024 results showed that Nel is on the right path

toward black numbers, and the alkaline division achieved an important milestone,

reaching a positive EBITDA.

"Our revenues and EBITDA continue to improve, showing that the business model

works with scale," Volldal said when he presented the results.

ENDS

For additional information, please contact:

Kjell Christian Bjørnsen, CFO, +47 917 02?097

Lars Nermoen, Head of Communications, +47 902 40 153

About Nel ASA | www.nelhydrogen.com

Nel has a history tracing back to 1927 and is today a leading pure play hydrogen

technology company with a global presence. The company specializes in

electrolyser technology for production of renewable hydrogen. Nel's product

offerings are key enablers for a green hydrogen economy, making it possible to

decarbonize various industries such as transportation, refining, steel, and

ammonia.

Forward-looking statements: This announcement contains certain forward-looking

statements. By their nature, forward-looking statements involve risk and

uncertainty because they reflect the company's current expectations and

assumptions as to future events and circumstances that may not prove accurate. A

number of material factors could cause actual results and developments to differ

materially from those expressed or implied by these forward-looking statements.