Nel Hydrogen Electrolyser AS, a subsidiary of Norway-headed hydrogen technology provides Nel ASA (Nel) and compatriot energy major Statkraft AS (Statkraft) have signed a Letter of Intent (LoI) for the delivery of 40 – 50 MW of alkaline electrolyzers to support green steel production by CELSA Armeringsstål AS (CELSA) at Mo Industripark in Norway – Hydrogen Hub Mo.
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.
Currently, this process leads to annual carbon dioxide (CO2) emissions of approximately 100 000 tonnes per annum, and through introducing green hydrogen in the process, emissions can potentially be reduced by 60 percent.
Nel and Statkraft have signed a Letter of Intent (LoI) to develop a large-scale electrolyzer plant of 40-50MW, with superior performance compared to today’s solutions.
Through our electrolyzer scale-up program we have not only identified ways to manufacture our alkaline electrolyzers more efficiently, but we have also identified a number of measures that can be implemented to improve the electrolyzer 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, said Jon André Løkke, CEO of Nel.
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 CO2-emissions from the Norwegian industry significantly, by utilizing our renewable power. As a development project, it will require support for technology development and commercialization to be realized. 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, said Bjørn Holsen, Head of New Business at Statkraft
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 electrolyzer capacity in a number of steps towards 2030.
