Nel ASA: A Step Forward in Green Hydrogen Production with New Purchase Order

Nel ASA, a leading pure play hydrogen technology company, has recently received a significant purchase order for two containerized PEM electrolyser units, valued at approximately USD 7 million. This order, for two MC500 electrolysers with a capacity of 2.5 MW each, will be used to produce hydrogen for a new steel mill in the US. The customer, one of the largest US steel producers, is an existing user of Nel's PEM electrolysers at two other sites, indicating their satisfaction with Nel's performance and reliability.



This purchase order aligns with Nel ASA's strategic goals for expanding its market share in the containerized PEM electrolyser segment. The order from an existing customer signifies their confidence in Nel's technology and demonstrates the increasing demand for smaller installations. The turn-key concept offered by Nel's containerized PEM electrolysers, which provides easy outdoor installation and operation, is particularly attractive to customers seeking reliable and efficient solutions.

The order also presents opportunities for future collaborations and upselling. As Nel ASA continues to work with this customer, they may consider larger or more advanced systems, leading to upselling opportunities. Additionally, the order could pave the way for Nel to expand its presence in the US steel industry, potentially leading to further orders and partnerships with other steel producers in the region.



While this order is a positive development for Nel ASA, it is essential to consider the company's recent struggles with order intake and delayed projects. The USD 7 million order will contribute to Nel ASA's revenue and help improve cash flow, but it may not fully offset the financial impact of delayed projects and lower order intake. Nel ASA will need to continue pursuing sales opportunities and addressing the challenges posed by delayed projects and lower order intake to maintain its financial stability and growth.

In conclusion, Nel ASA's recent purchase order for two containerized PEM electrolyser units is a significant step forward in green hydrogen production. The order, valued at approximately USD 7 million, demonstrates the increasing demand for smaller installations and the reliability of Nel's turn-key concept. As Nel ASA continues to work with this customer and pursue new opportunities, they have the potential to further strengthen their market position and drive growth in the green hydrogen sector.