Business World of Renewable Energy

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World Premiere: Nel ASA Launches Fully Automated Manufacturing Of Electrolyzers For Hydrogen Production

Oslo, Norway - The share of green hydrogen will increase significantly worldwide in the future. One prerequisite for this is that electrolysers become mass-produced, industrially manufactured and cheaper due to economies of scale. Norway's Nel ASA has now announced the official opening of the world's first fully automated electrolyzer production plant.

Electrolyzers are plants in which pure hydrogen can be produced using electric power. The global market for electrolyzers is still in its early stages, but that may soon change. The cost reduction potential is also high.

Nel ASA mass-produces electrolyzers at the Herøya factory

For green hydrogen to become competitive, the equipment, i.e. the electrolysers, must become cheaper. The basis for decreasing investment costs is increased automation and production of electrolysers on an industrial scale.

Nel ASA plans to produce green hydrogen, i.e. hydrogen produced with renewable energy, as cheaply or cheaper than natural gas-based hydrogen by 2025. The only way to do that is through economies of scale by mass production.

"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”, says Jon André Løkke, Nel´s CEO.

Launch with 500 MW electrolyzer production capacity

Nel is launching the world's first fully automated electrolyser production plant on the Herøya peninsula, southwest of Oslo, with an annual plant production capacity of 500 MW. Nel can increase the plant's production capacity to 2 GW (2,000 MW). By 2025, Nel even aims to reach a production capacity of 10 GW.

Terje Lien Aasland, Minister of Energy and Petroleum sees Norway with its industrial environment well prepared: "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 electrolysers are needed, and it will be a sign of quality that the electrolysers are marked 'Made in Norway'."

Nel ASA also plans to manufacture electrolyzers in the U.S.

"At Herøya we are producing the best alkaline electrolysers in the world. The next step would be to industrialize our PEM technology in the US in a similar way", Jon André Løkke, CEO of Nel, is optimistic. Electrolyzer modules with 20, 100 and 200 MW capacity are to form the basis. The large-scale concepts will enable Nel to optimize overall investments, exploit synergies and thus reduce costs, adds Løkke.

Source: IWR Online, 21 Apr 2022