Norway – Electrolyzer producer Nel ASA set a target of producing green hydrogen at USD 1.5 per kilo by 2025, to outcompete fossil alternatives. The company aims for cost reductions through scale-up of production to multi-GW scale.
Jon André Løkke, Chief Executive Officer of Nel: ‘Green renewable hydrogen is set to outcompete fossil alternatives, and Nel is placed in the centre of this transition. We’re launching our target which should enable our customers in certain markets to produce green renewable hydrogen from a large-scale facility at 1.5 USD/kg from low cost renewable power, already within 2025. Achieving this would allow green hydrogen to start to reach fossil parity, representing one of the most significant achievement for zero-emission solutions and a carbon neutral planet.’
Nel’s Capital Markets Day 2021 outlines the strategy and ambitions towards 2025. Addressing the current hydrogen market of 70 million tons, which, by the Hydrogen Council, is expected to grow by 8-times by 2050, largely based on green hydrogen.
Taking electrolysis to GW-scale
Nel is expanding the electrolysis production to accommodate large-scale projects by constructing a fully automated manufacturing facility at Herøya, Norway. Test production of the first 500 MW production line will commence in the second quarter of 2021. With start of commercial ramp-up in the third quarter 2021. Based on the secured facility at Herøya, Nel outlined the potential to expand the production capacity at this facility beyond 2 GW annually.
Strong market outlook
Nel reiterates the confidence in the long-term potential for the industry, supported by the “green recovery” outlined by various governmental initiatives. The company aims to capitalize on the opportunities by leveraging on the position as a technology front-runner.