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Nel holds official opening of the Herøya facility

Nel holds official opening of the Herøya facility
On April 20, 2022, Nel held the official opening of the world´s first fully automated electrolyzer production facility in Herøya, Norway (photo courtesy Nel).

In Norway, hydrogen technology solutions provider Nel ASA has held the official opening of its new fully automated electrolyzer production facility in Herøya paving the way for cost reduction in green hydrogen production.

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Green renewable hydrogen currently makes up just one percent of the world´s total industrial and mobility hydrogen consumption.

Nel’s pioneering new plant at Herøya, which was officially opened on April 20, 2022, is at the forefront of the race to turn one into one hundred.

As cheap or cheaper by 2025

In addition, the falling cost of green hydrogen will unlock new application areas where green hydrogen is the best or only option for decarbonizing.

The secret according to Nel is scale-up and automation, which is lowering the unit cost of electrode production like never before.

The company says that it is on track to make green renewable hydrogen as cheap, or cheaper, to produce than natural-gas-based hydrogen by 2025.

Nel is reiterating its goal of delivering green hydrogen at US$1.5/kg based on electricity of US$20/MWh, >8 percent cost of capital, cost of land, civil works, installation, commissioning, building, water, etc., lifetime 20 years incl. O&M cost, at 30 bar.

To achieve this, CAPEX must be reduced to a quarter of today’s level.

Half of the savings we need to make will come from scale-up and increased efficiency in production. The rest will come from the economy of scale, and from effective industrial partnerships. At Herøya we are producing the best alkaline electrolyzers in the world. The next step would be to industrialize our PEM technology in the US in a similar way, said Jon André Løkke, CEO of Nel.

Modular blocks and scalable production

Løkke added Nel is also investing a lot of capital in the development of concepts as large as 800 MW and beyond based on 20, 100, and 200 MW building blocks.

Our large-scale concepts allow us to optimize the overall CAPEX and realize synergies to reduce cost, said Jon André Løkke said.

The plant at Herøya currently has 500 MW of production capacity. With further investment, this figure can rise to 2 GW, a sizeable portion of the 10 GW of capacity Nel is targeting to reach within 2025 if required by the market.

Nel’s new factory at Herøya is a step in the right direction towards a future without emissions. In a growing hydrogen market, even more electrolyzers are needed and it will be a sign of quality that the electrolyzers are marked “Made in Norway”. Norway has competitive and competent industrial environments that can contribute to hydrogen development. Not least at Herøya, said Terje Lien Aasland, Minister of Energy and Petroleum who officiated at the grand opening.

Nel is a leading electrolyzer company in the world with a track record of large-scale projects, making solutions that are bankable with proven performance guarantees.

The two largest electrolyzer plants in Europe are currently being finalized with Nel’s technology.

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