Deflagration in the hydrogen sector

The electrolyser manufacturer Nel wants to make hydrogen competitive with fossil fuels by 2025. The company is unimpressed by the latest course corrections.

Experimental setup for electrolysis.  Here, water is split into oxygen and hydrogen, which is used in fuel cells, for example.

Whydrogen is one of the megatrends of our time. Especially in energy-intensive industries such as chemicals, steel or cement, green hydrogen is traded as an alternative to fossil fuels. But a lot is still research or only works in pilot plants. The Nel company has made further progress. In addition to electrolysis systems with various capacities and solutions for storing renewable energy, the company also builds complete hydrogen filling stations – Nel is already the largest operator in Norway. CEO Jon André Løkke has announced the goal of reducing the production costs for 1 kg of sustainably produced hydrogen to 1.50 dollars by 2025 in order to be competitive with fossil fuels.

In order to get into this range with unit costs, the company is continuing to work on expanding production capacity despite the Corona crisis. Nel is currently investing the equivalent of 17 million euros in a fully automated production facility for electrolysers in Herøya, south of Oslo. Production is to start in the fourth quarter of 2021 with a capacity of 500 megawatts per year, later more than two gigawatts per year should be possible.