Nel is distinguished as a Norwegian alkaline electrolyzer manufacturer with the vision of empowering generations with clean energy. The company pledges to use high-end technologies that allow its global customer segments to make everyday use of hydrogen in domestic and industrial applications.
Earlier this year, the Norwegian electrolyzer manufacturer unveiled a plan to set the world’s largest 2GW factory in a bid to cut the cost of its electrolyzers by over 75%. In the program, Nel also seeks to reduce the price it charges for its green hydrogen to $1.5 per kg before 2025. This is roughly the exact cost of grey hydrogen, which is manufactured from unabated fossil fuels.
In a Nel Capital Markets Day presentation, Jon André Løkke, Nel’s chief executive, the company was about to complete the construction of its first 500 megawatts production line in Herøya, Norway. It is expected that the first 500-megawatt line will reduce the alkaline electrolyzer factory’s production costs by 50%.
The CEO remained optimistic that Nel’s growth journey would create a platform for green renewable hydrogen to out compete the current fossil fuel solutions. Moreover, in Jon André Løkke’s view, green hydrogen will be cheaper than grey hydrogen in 2025 when Nel finishes building its production facilities as planned.
Over the years, Nel has adopted an expansion plan to deliver its hydrogen solutions to the entire value chain. As a result, Nel’s operations cover the whole green hydrogen value chain from product innovations to the fueling stations. It seeks to facilitate a swift transition to green hydrogen among industries.
Despite the expansion plan, Nel faces tough competition from the England-based ITM Power, which has also started its expansion schedule by creating a new 350 megawatts production line in Sheffield. ITM pledges to increase its production capacity by considering its consumer demands.
Similarly, Nel’s vice president of operations, Erik Løkke-Øwre, revealed that the green hydrogen manufacturer would increase its operating capacity by considering the demands placed by the market.