Samsung E&A will become Nel’s largest shareholder and an EPC partner, selling complete hydrogen plants using the Norwegian firm’s electrolyser technology.
Under an EPC collaboration agreement, the South Korean firm will develop its own hydrogen plant designs based on both Nel’s alkaline and PEM electrolyser stack and balance of stack technology.
In a separate agreement, Nel plans to issue 167,132,530 shares to Samsung E&A for NOK 353m ($33.1m) to give the company a 9.1% shareholding in Nel. The share sale is subject to board approval.
Nel and Samsung also plan to work on a larger balance of stack system for alkaline electrolysers.
The deals come as the near-100-year-old electrolyser maker looks to focus on manufacturing its core stack technologies – a strategy becoming more common across the sector.
Nel has been facing increasing financial pressure with stalling projects hampering orders. In January, it paused alkaline electrolyser manufacturing at its flagship plant in Herøya as well as a suite of job cuts.
Its most recent financial results showed a 44% drop in its cash reserves.
Nel President and CEO, Håkon Volldal, explained, “Our strategy is to focus on electrolyser stack and balance of stack technology. Therefore, we need to work with EPC companies who can provide balance-of-plant solutions and increase our global market reach.”
Wider industry commentators suggest deals of this nature could become more common as standalone technology providers face increasing financing challenges.
Samsung E&A has been increasing its involvement in hydrogen developments globally.
Hong Namkoong, CEO of the firm said the deals would see it provide “integrated electrolyser solutions with competitive value and bankability to green hydrogen project owners…
“Nel is a market-leading electrolyser company and the only company that has competitive technology in both Alkaline and Proton Exchange Membrane electrolyser with a 100-year history.”
