Nel has formally signed a €135m ($146m) grant from the EU’s Innovation Fund, designed to industrialise its new pressurised alkaline hydrogen electrolysers.
The Norwegian manufacturer was initially awarded the grant last October. Nel described the new technology as a “fundamental redesign” of its previous pressurised systems, offering higher efficiency to lower OPEX and faster response times for seamless integration with renewables.
Read more:Nel gives pressurised alkaline electrolysers a second shot with €135m EU boost
In a LinkedIn statement, Nel said the funding “represents a significant milestone in our efforts to scale green hydrogen production, bolster technological advancements and contribute to Europe’s climate goals.”
With over six years of experience in developing alkaline technology, Nel manufactures both PEM and alkaline electrolysers at its Herøya, Norway, and Connecitcut, US, facilities.
However, last month, Nel announced it will cut jobs and temporarily halt production of its alkaline technology due to slow uptake.
Read more:Nel pauses alkaline electrolyser production in Herøya, announces layoffs
The longstanding hydrogen technology company said order intake in 2023 and 2024 “fell short of expectation” with several customer projects delayed or “at risk of being cancelled.”
In its recent Q4 2024 earnings call, Nel also revealed that it will not proceed with its additional electrolyser factory in Michigan until there is more demand for the technology, despite securing up to $200m in grants for the facility.
Read more:Nel won’t build 4GW Michigan electrolyser factory until there’s market demand
Chief Financial Officer (CFO) Kjell Christian Bjørnsen said, “We must spend the money to get the grant, but we can’t build the Michigan facility until we have a market to sell what we’re producing.”
The announcement follows Nel’s 23% year-over-year drop in order backlog to NOK 1.6bn ($144m) in 2024, alongside a 44% decline in cash reserves, which fell from NOK 3.3bn ($297m) to NOK 1.8bn ($162m) over the same period.
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