Nel concludes fuelling division spin-off, focuses on electrolysers

Nel's electrolyser production facility in Heroya, Norway. Source: Nel ASA.

Norway’s Nel ASA (OSE:NEL) has finalised the spin-off of its former Fueling division and is now focused solely on the development, production and supply of PEM and alkaline electrolysers, it was announced on Wednesday.

The former Fueling division was spun out and listed on the Oslo Stock Exchange as Cavendish Hydrogen. The new company will be engaged in the development of hydrogen fuelling equipment for heavy-duty vehicles.

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Following the separation, Nel has about 450 employees in Norway and the US.

“Nel has almost a century of experience developing electrolysers and has installed thousands of systems around the world. Building on our unparalleled track record, we will, from now on, spend one hundred percent of our capacity and hydrogen know-how on developing and delivering the most reliable and energy-efficient electrolysers,” commented Nel’s CEO, Hakon Volldal.

On the topic of developing next-generation products, Nel said that its work on PEM electrolysers with General Motors’ R&D departments is progressing rapidly, while its redesign of the pressurised alkaline concept has reached the prototype stage. The company also has US Department of Energy (DOE) funds on its disposal to further develop its AEM technology.

Nel has doubled the annual production capacity at the fully automated electrode factory in Heroya, Norway, to 1 GW over the past year and is currently expanding its PEM manufacturing facility in Wallingford, Connecticut, to 500 MW. It also benefits from DOE’s financial backing to the tune of USD 170 million (EUR 157m) to build a gigafactory in Detroit, Michigan, where it plans to make next-generation PEM and pressurised alkaline electrolysers.

When it comes to the company’s financial performance, CEO Volldal noted that based on first-quarter results, its revenues and earnings before interest, tax, depreciation and amortisation (EBITDA) continue to improve.

(USD 1.0 = EUR 0.925)