Nel ASA: Receives PEM purchase order from the HyFuel and Kaupanes hydrogen projects valued at more than USD 50 million
MWN-AI** Summary
Nel ASA, a prominent player in hydrogen technology, has secured a notable purchase order exceeding USD 50 million from Kaupanes Hydrogen AS and HyFuel AS for two significant hydrogen projects located in Norway. This order, marking Nel's second largest to date, involves the supply of its MC 500 containerized Proton Exchange Membrane (PEM) systems, totaling 40 MW capacity across both projects.
The HyFuel project, supported by Enova with NOK 180 million, will be based at an offshore supply facility in Florø, while the Kaupanes project, with NOK 206 million in support, will operate from the Kaupanes industrial area in Eigersund. Both projects are being developed in collaboration with Hydrogen Solutions AS (HYDS), a Norwegian firm specializing in green hydrogen production utilizing renewable energy.
Nel CEO Håkon Volldal expressed enthusiasm about partnering with the experienced HYDS in advancing green hydrogen in Norway, emphasizing the importance of this order following a period of lower order intake for the company. The projects signal robust confidence in Nel's proven PEM platform, establishing a benchmark for future large-scale projects.
The delivery of these systems is scheduled between the second half of 2026 and 2027, with commercial operations aimed for early 2028. This venture is expected to enhance Nel's financial performance and product scalability while strengthening its service operations across Europe. As a key enabler in the growing hydrogen economy, Nel ASA continues to be pivotal in the decarbonization of various sectors, aiming to facilitate a sustainable future through advanced hydrogen technologies.
MWN-AI** Analysis
Nel ASA has recently secured a significant purchase order exceeding USD 50 million from the Kaupanes and HyFuel hydrogen projects in Norway. This contract is notable as it represents Nel’s second-largest firm purchase order to date and highlights its position in the rapidly growing green hydrogen sector.
The positive aspects of this development deserve a thorough analysis. Firstly, the fact that the order is for Nel’s PEM (Proton Exchange Membrane) systems emphasizes the increasing demand for efficient hydrogen production technologies. Both projects (20 MW each) are funded with substantial support from Enova, indicating strong government backing and confidence in green hydrogen expansion in the Nordics. This can bolster Nel's credibility and attract more project opportunities domestically and internationally.
From a financial perspective, the successful execution of these contracts will likely enhance Nel’s revenue, improve its cost base, and expand its aftermarket operations in Europe. Increased production capacity not only diversifies its revenue streams but also strategically positions Nel to capture future market share in an evolving hydrogen economy.
However, potential investors should also consider the broader market dynamics. The hydrogen market, while burgeoning, is also marked by intense competition and regulatory changes. Despite these challenges, Nel's established expertise and successful track record with PEM systems place it advantageously.
In conclusion, this order from Kaupanes and HyFuel not only strengthens Nel’s order book but also serves as a critical reference point for prospective clients, reinforcing investor confidence. For those looking to invest, it could be wise to monitor the execution and delivery timelines of these projects, as they may directly affect stock performance and market sentiment surrounding Nel ASA in the upcoming years.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
OSLO, Norway, Nov. 5, 2025 /PRNewswire/ -- Nel Hydrogen US, a subsidiary of Nel ASA (Nel) (OSE: NEL), has received a firm purchase order from Kaupanes Hydrogen AS and HyFuel AS in Norway. Both are developed by Hydrogen Solutions AS (HYDS) in close collaboration with the respective project co-owners. Each project, both with a capacity of 20 MW, are based on Nel's MC 500 containerized PEM systems, totaling 40 MW. The total contract value is above USD 50 million, the second largest firm purchase order Nel has ever received, and the company's largest order ever for PEM equipment.
The HyFuel project is owned by HYDS, Sogn og Fjordane Energi AS and Fjord Base Holding AS. The hydrogen production facility will be located at the offshore supply base in Florø, Kinn municipality. HyFuel has been awarded NOK 180 million in support from Enova.
The Kaupanes project is owned by HYDS, Dalane Energi AS and Eigersund Næring og Havn KF. The hydrogen production facility will be located at the Kaupanes industrial area in Eigersund municipality. Kaupanes has been awarded NOK 206 million in support from Enova.
HYDS is a Norwegian company based in Leirvik, Stord. The company develops, owns, and operates facilities for green hydrogen production from renewable energy. Its business spans across the full value chain, from development, power sourcing and electrolysis, to distribution of hydrogen and related products. HYDS has a proven track record in establishing and operating hydrogen systems and is among the few Norwegian developers with both operational experience and a scalable project pipeline.
"We are very pleased to reach this decision and look forward to working with Nel as a key supplier on these two projects. This represents an important step in advancing the green hydrogen market in Norway and the Nordics" says HYDS CEO Frode Kirkedam.
"We are excited to sign these contracts. HYDS is an experienced developer, and we look forward to working closely with them on these two important projects in our home country of Norway," says Nel's President and CEO, Håkon Volldal
"This strategically important order represents Nel's second largest contract to date in terms of value and marks an important milestone for the company coming out of a period of lower order intake. Nel has already delivered several systems globally based on its proven and reliable PEM platform. With today's order we confirm the platform's competitiveness also for larger installations and it will serve as a key reference for future projects," Volldal says.
This is a firm purchase order for full scope containerized PEM solutions with a total contract value of above USD 50 million. The projects are expected to have a positive impact on Nel's financial performance, product cost and increase the scale of Nel's service and aftermarket operations in Europe. The systems will be delivered from H2'2026 throughout 2027 targeting commercial operation in early 2028. The stacks will be built at the automated Wallingford factory in the US.
For additional information, please contact:
Kjell Christian Bjørnsen, CFO, +47 917 02?097
Wilhelm Flinder, Head of IR, Communications & Marketing +47 936 11 350
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, and hydrogen fueling equipment for road-going vehicles. 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.
This information is subject to a duty of disclosure pursuant to Section 5-12 of the Norwegian Securities Trading Act. This information was issued as inside information pursuant to the EU Market Abuse Regulation, and was published by Wilhelm Flinder, Head of Investor Relations, Communications and Marketing, at Nel ASA on the date and time provided.
This information was brought to you by Cision http://news.cision.com
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FAQ**
How does the recent purchase order from the HyFuel and Kaupanes hydrogen projects enhance the competitive position of Nel ASA ADR NLLSY in the rapidly evolving renewable hydrogen market?
What specific financial impacts do you foresee for Nel ASA ADR NLLSY as a result of this USD 50 million purchase order, particularly in terms of revenue growth and market expansion?
Given the importance of these projects in advancing green hydrogen in Norway, how will Nel ASA ADR NLLSY leverage this opportunity to establish strategic partnerships in the Nordics?
With the systems expected to be delivered from H2'2026 through 2027, how does Nel ASA ADR NLLSY plan to manage production and ensure timely delivery to meet the operational targets set for early 2028?
**MWN-AI FAQ is based on asking OpenAI questions about Nel ASA ADR (OTC: NLLSY).
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