Nel will deliver a containerised 2.5MW PEM electrolyser unit to the 300-tonne-per-year Aberdeen Hydrogen Hub project in Scotland.
The hub is being developed as a joint venture between BP and the Aberdeen City Council, although Scottish manufacturer Hydrasun made the purchase order for Nel’s unit. A final investment decision (FID) was taken on the hub last year.
Hydrasun, a specialist in hydrogen system integration and refuelling solutions, will design and build the hub’s refuelling station and infrastructure, selecting Nel’s electrolyser for hydrogen production.
Nel is expected to supply the electrolyser from its PEM manufacturing facility in Wallingford, Connecticut. Last October, the Norwegian company completed an expansion of the plant, increasing the annual capacity from 50 to 500MW.
The company has said, however, that it will not build its 4GW Michigan electrolyser factory until there’s market demand, despite receiving up to around $200m in US funding to build it.
Hydrasun’s CEO, Neil Thompson, said the awarding of initial contracts for major equipment packages for the hub is a “key milestone.”
Håkon Volldal, Nel’s President and CEO, added, “Hydrasun is a professional enabler with quality backing, and we look forward to our collaboration, supporting them with fast-to-market and reliable electrolyser equipment.”
In January, Nel revealed it would cut jobs and temporarily halt production of its alkaline electrolyser technology due to slow uptake.
The longstanding hydrogen technology company said during a financial earning call last month that order intake in 2023 and 2024 has “fell short of expectation.” Last year, Nel experienced a 44% decline in cash reserves, which fell from NOK 3.3bn ($297m) in 2023 to NOK 1.8bn ($162m).
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