Norwegian Hydrogen Specialist Nel ASA Lands Record Contract

In a significant development for the hydrogen sector, Norwegian technology firm Nel ASA has announced the largest single order in its corporate history. The contract, valued at over $50 million, is for hydrogen projects within Norway and signals a potential turning point for the company following a challenging period.

The groundwork for this achievement was partially laid earlier in March 2025, when Nel established a pivotal cooperation with Samsung E&A. This partnership saw Samsung acquire a 9.1% stake in Nel for 353 million NOK, positioning the Korean firm as the largest single shareholder.

The newly secured order was placed with Nel Hydrogen US by Kaupanes Hydrogen AS and HyFuel AS. It encompasses two separate 20-MW hydrogen production projects, resulting in a combined capacity of 40 MW. Both facilities will be equipped with Nel's containerized MC 500 PEM electrolyser systems.

Substantial public funding underpins these ventures. The HyFuel initiative in Florø has been awarded 180 million NOK in support from Enova. Similarly, the Kaupanes project located in Eigersund will receive a grant of 206 million NOK. The delivery of the systems is scheduled to commence in the second half of 2026, with operations expected to start in early 2028.

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A Welcome Development Amidst Mixed Financials

This landmark contract arrives at a crucial juncture for Nel. The company's third-quarter results, released on October 29, presented a mixed financial picture. While revenue from customer contracts declined by 17% to 303 million NOK, the company showed improvement in its underlying profitability. Its EBITDA loss narrowed considerably to 37 million NOK, a significant recovery from the 90 million NOK loss reported in the same period the previous year.

Håkon Volldal, Chief Executive Officer of Nel, emphasized the strategic importance of the deal. He stated that this order represents a key milestone after a phase of lower order intake and serves to validate the competitiveness of the company's PEM platform for large-scale installations.

Current Order Book and Manufacturing

The company's current order backlog now stands at 984 million NOK. This is divided between its two core technologies, with the Alkali segment accounting for 600 million NOK and the PEM technology segment comprising 400 million NOK. The PEM stacks for these projects will be manufactured at Nel's automated production facility in Wallingford.