Electrolyzers, News Nel moves ahead with 1 GW pressurized alkaline production line

Nel has approved the investment needed to industrialize its next-generation pressurized alkaline platform, following successful prototype testing and EU Innovation Fund support.

 

The company has taken the final investment decision to build up to 1 GW of production capacity for its next-generation pressurized alkaline platform at the company’s Herøya facility in Norway. The decision follows a seven-year development program and the successful start-up and hydrogen production of the full-scale prototype at Herøya Industripark. Development began in 2018, progressing through testing of smaller stacks before completion of full-scale validation that confirmed what the company described as market-leading system efficiency.

 

The company expects to launch the system commercially in the first half of 2026 and to supply it at scale in 2027. According to Nel, the pressurized alkaline platform represents a significant improvement in hydrogen production economics by reducing system CAPEX and improving energy efficiency, thereby lowering the levelized cost of hydrogen. The company stated that the resulting economics could help bridge 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,” said Håkon Volldal, President and CEO of Nel.

 

The platform uses a fully modularized, skid-based design with pre-fabricated, factory-tested modules shipped in standard container skids. Nel stated that this approach simplifies engineering, logistics, and installation, enabling complex projects to be delivered as standardized products. The system is designed for reliable outdoor operation, eliminating the need for dedicated buildings and reducing deployment complexity.

 

The EU Innovation Fund has granted Nel up to €135 million to industrialize the platform, supporting a total annual production output of 4 GW. The funding covers up to 60% of relevant CAPEX and operational costs. The initial 1 GW buildout represents an investment of about NOK 300 million before grants, with the milestone-based EU support expected to unlock more than €10 million as a first payment. CAPEX is scheduled to be incurred through 2026 and 2027, and Nel reported that overall capital costs for this platform are significantly lower than for atmospheric alkaline production lines.

 

Following commercialization and industrialization of the pressurized alkaline system, Nel is assessing the book values of two idling 500 MW atmospheric alkaline production lines at Herøya.

 

Source:   Hydrogencentral