Nel Unveils new Electrolyzer Platform – Hydrogen Costs Expected to Drop Significantly
Oslo (Norway) – Norwegian hydrogen specialist Nel ASA has introduced a new generation of pressurized alkaline electrolyzers aimed at significantly reducing the costs and complexity of large-scale hydrogen projects. After more than eight years of development and extensive testing at the company’s Herøya site in Norway, the platform is now said to be ready for commercial deployment. Shares in the company were trading at around €0.27 in early trading.
New platform intended to drastically reduce investment costs
Nel states that a turnkey 25 MW plant can be delivered at total costs below USD 1,450 per kilowatt. By comparison, many current large-scale projects reportedly face system costs of up to USD 3,000 per kilowatt.
According to the company, the new platform could reduce capital expenditures by 40 to 60 percent compared with current market standards. At the same time, project timelines are expected to shorten and implementation risks to decrease.
CEO Håkon Volldal said the new platform is designed to make renewable hydrogen easier to scale, more flexible, and more competitive. Hydrogen is becoming increasingly important not only for industrial applications, but also for energy storage, grid stabilization, and energy security.
Scaling through modular system design for industrial mega-projects
The new electrolyzer platform is based on a fully modular system architecture with pre-assembled and pre-tested standard modules. Unlike many of today’s hydrogen projects, this approach is intended to significantly reduce the need for customized project engineering.
The electrolyzers operate at a pressure of 15 bar, reducing the need for additional hydrogen compression. According to Nel, this improves energy efficiency while also lowering the technical complexity of large-scale installations.
The system is also designed for outdoor installation, which is expected to reduce infrastructure and construction costs.
Hydrogen gaining strategic importance
Nel sees growing demand for low-carbon hydrogen particularly in industrial sectors such as ammonia and methanol production, refineries, steel manufacturing, and sustainable aviation fuels.
At the same time, hydrogen is increasingly being viewed worldwide as a storage and flexibility solution for energy systems with a high share of renewable energy. In the future, hydrogen could play a larger role in long-term energy storage, grid balancing, and decentralized energy supply. According to the company, interest is also rising in resilient energy infrastructure and security-related applications.
Industrial expansion at Herøya supported by the EU
Alongside the market launch, Nel is continuing to expand production at its Herøya facility. Following a final investment decision expected by the end of 2025, the site is initially planned to reach a production capacity of up to 1 GW per year. In the long term, the company aims to expand capacity to as much as 4 GW annually.
The industrialization effort is being supported by grants from the EU Innovation Fund totaling up to €135 million. According to the company, the funding covers up to 60 percent of eligible investment costs and is intended to accelerate the commercialization of the technology.
Source: IWR Online, 08 May 2026
