Nel ASA has received a purchase order for 5MW of containerised PEM electrolyser units for $7m from one of the US’ “largest steel producers.”
Two 2.5MW MC500 electrolysers will be delivered to the undisclosed customer, which already uses two additional Nel electrolysers to generate hydrogen at two other sites in the US.
The most recent order will be delivered from Nel’s manufacturing facility in Wallingford, Connecticut, to be used in a new steel mill in the US.
Nel’s Chief Commercial Officer (CCO), Todd Cartwright, said the order signifies the customer’s “satisfaction with the performance of [Nel’s] electrolysers.”
Cartwright added, “We continue to see an increasing demand for our containerised PEM electrolysers for smaller installations as this reliable turn-key concept offers easy outdoor installation and operation.”
US Steel, Cleveland-Cliffs and Nucor Corporation are understood to be three of the US’ biggest steel producers, although there has been no previous announcement of them purchasing Nel technology.
The order comes shortly after the Norwegian firm announced it will cut jobs and temporarily halt production of its 1GW alkaline hydrogen production technology in Herøya, Norway.
Read more:Nel pauses alkaline electrolyser production in Herøya, announces layoffs
Nel said its order intake in 2023 and 2024 “fell short of expectation” with several customer projects delayed or “at risk of being cancelled.”
Furthermore, Nel’s hydrogen refuelling business spin-off Cavendish Hydrogen announced this week it will cut its workforce by 45% following a challenging first year as a separate company.
Read more:Cavendish Hydrogen to cut workforce by 45% and halt hydrogen refuelling station development
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