Norwegian company Nel has formally signed a €135 million grant agreement with the EU’s Innovation Fund to support the industrialization of its next-generation electrolyzer technology.
As per the information given in October 2024, this technology is in the prototype stage, and the initial build-out is planned for an annual capacity of 1-2 GW, utilizing existing space at the company’s Herøya facility in Norway.
Reportedly, the EU’s support will be phased with the company’s own investments for up to 4 GW of capacity for pressurized electrolyzer equipment.
In the October statement, Nel said the final investment decision (FID) to start building the capacity depends on achieving successful testing in the current prototype and planned pilot stage, as well as in the market acceptance of the new technology.
Commenting on the EU grant, the company said: “This funding represents a significant milestone in our efforts to scale green hydrogen production, bolster technological advancements, and contribute to Europe’s climate goals.”
It is important to mention that, in January 2025, Nel decided to temporarily halt production at the alkaline electrolyzer production facility in Herøya. The decision follows lower-than-expected order intake in 2023 and 2024, the company revealed, adding that as a result, there is a limited need to produce new alkaline electrolyzer equipment in the near-term.
In 2024, Nel pronounced itself as a company solely dedicated to developing and delivering electrolyzers to produce renewable hydrogen. At the same time, the company’s former fueling division was spun out and listed on the Oslo Stock Exchange as Cavendish Hydrogen.