Nel ASA: Strengthens its industry leadership as the final investment decision has been taken to industrialize the Next-Generation Pressurized Alkaline platform
MWN-AI** Summary
Nel ASA, a leading hydrogen electrolyser technology company, has announced a significant milestone in its development of the Next Generation Pressurized Alkaline platform. Following a seven-year development program, the Nel Board of Directors has made the final investment decision to commence construction for up to 1 GW of production capacity at its Herøya facility in Norway. This project is backed by the EU Innovation Fund, underscoring its strategic importance in the clean hydrogen sector.
The development of this advanced hydrogen production system started in 2018, and rigorous testing has verified its unparalleled efficiency and effectiveness. Nel expects to launch the Next Generation Pressurized Alkaline electrolyser commercially by mid-2026, with large-scale production anticipated in 2027. This platform represents a breakthrough in hydrogen production economics, significantly reducing capital expenditure (CAPEX) and operational costs while enhancing energy efficiency, which is crucial for lowering the levelized cost of hydrogen (LCOH).
The new system takes a modular approach, using pre-fabricated, factory-tested container skids, which simplifies both engineering and logistics. This design allows for less complex deployments, particularly for outdoor operations where traditional infrastructure isn't required. Nel has been awarded up to EUR 135 million from the EU Innovation Fund, which will cover up to 60% of associated costs, further easing the investment burden.
With an investment of approximately NOK 300 million planned for the initial phase, subsequent phases could contribute to an annual production output of 4 GW. Nel's advancement in this sector not only solidifies its industry position but also holds immense potential for unlocking previously impractical business models within the clean hydrogen landscape, reinforcing the push toward a more sustainable future.
MWN-AI** Analysis
Nel ASA (OSE: NEL) continues to solidify its position as a leading player in the hydrogen production sector following its final investment decision to industrialize the Next-Generation Pressurized Alkaline platform. This strategic move reflects a culmination of rigorous testing and development over seven years and is expected to significantly enhance Nel's technology offerings and operational efficiency.
The impending launch of up to 1 GW production capacity at the Herøya facility represents a pivotal moment for Nel, as the company anticipates commencing commercial production in the first half of 2026. The substantial backing from the EU Innovation Fund, covering as much as 60% of CAPEX and operational costs, underscores the project's viability and the strategic direction of funding towards green technologies.
Notably, the Next Generation Pressurized Alkaline system promises to deliver a transformative reduction in the levelized cost of hydrogen (LCOH), making previously unviable business cases feasible without extensive subsidies. This enhancement not only positions Nel strategically within the hydrogen value chain but also contributes to the broader goal of decarbonization across multiple industries including transportation and steel production.
Investors should take note of the planned ongoing capital expenditures expected to be incurred through 2026 and 2027, and the potential for exploring the financial recovery of the currently idling atmospheric alkaline production lines. Overall, Nel's focus on modular designs and simplified project execution is likely to appeal to investors looking for exposure to the growing green hydrogen market.
Given these developments, Nel ASA appears well-positioned for substantial growth. Investors may consider taking a bullish stance on Nel, as its advancements in hydrogen technology and robust financial backing indicate strong future performance potential in the evolving energy landscape.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
OSLO, Norway, Dec. 12, 2025 /PRNewswire/ -- Nel ASA (Nel) (OSE: NEL) is pleased to announce that following a seven-year development program, and now a successful start-up and production of clean hydrogen on the Next Generation Pressurized Alkaline prototype, the Board of Directors has taken the final investment decision to begin construction on up to 1 GW of production capacity for this technology platform in the Herøya facility, Norway. The project is supported by the EU Innovation Fund.
Development of the Next Generation Pressurized Alkaline system was initiated in 2018 and after rigorous testing of various smaller stacks, Nel has now completed full-scale testing of the prototype at Herøya Industripark, Norway, validating market-leading system efficiency. The company expects to launch the system commercially in the first half of 2026 and be able to deliver at scale in 2027.
Building on 100 years of technology experience, Nel's Next Generation Pressurized Alkaline platform delivers a breakthrough in clean hydrogen economics, dramatically reducing system CAPEX and improving energy efficiency, driving down levelized cost of hydrogen (LCOH). This leap is expected to improve overall hydrogen production economics, and bridge critical funding gaps for hydrogen installations.
"Our new solution is extremely important for Nel as a company, but also for the clean hydrogen industry as a whole. A significantly improved levelized cost of hydrogen is expected to unlock business cases that were previously not viable without significant subsidies," says Håkon Volldal, President and CEO of Nel.
The platform is based on a fully modularized, skid-based design where every module is pre-fabricated and factory-tested before shipment in standard container skids. This approach dramatically simplifies engineering, logistics, and installation and is expected to transform complex projects into streamlined product deliveries. The system is designed to operate reliably outdoors, where costs and deployment complexity are further reduced as no dedicated building construction is required.
Nel has been granted up to EUR 135 million in support from the EU Innovation Fund to industrialize the Next Generation Pressurized Alkaline platform, enabling a total annual production output of 4 GW. This funding covers up to 60% of relevant CAPEX and operational costs related to industrialization.
The initial 1 GW of production capacity is estimated at an investment of about NOK 300 million before grants. The EU grant is milestone based and this investment decision is expected to unlock in excess of EUR 10 million as a first payment. The CAPEX is expected to be incurred throughout 2026 and 2027. Overall, the CAPEX for this platform is significantly lower than for atmospheric alkaline production lines.
Following the commercialization and industrialization of the pressurized alkaline solution the company is looking into the book values of the two 500 MW atmospheric alkaline production lines currently idling at Herøya.
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 electrolyser technology company with a global presence. The company specializes in Alkaline and PEM technology for production of renewable hydrogen. 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 will the industrialization of the Next Generation Pressurized Alkaline platform by Nel ASA ADR NLLSY enhance the company’s competitive position in the hydrogen production market?
What specific financial and operational risks does Nel ASA ADR NLLSY anticipate as it incurs CAPEX while expanding its production capacity at the Herøya facility?
In what ways does the EU Innovation Fund support impact Nel ASA ADR NLLSY's strategy for scaling the Next Generation Pressurized Alkaline platform, particularly regarding funding and operational costs?
What are the expected implications for current atmospheric alkaline production lines at Herøya as Nel ASA ADR NLLSY transitions to the new pressurized alkaline technology?
**MWN-AI FAQ is based on asking OpenAI questions about Nel ASA ADR (OTC: NLLSY).
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