Nel ASA: Strengthens its industry leadership as the final investment decision has been taken to industrialize the Next Generation Pressurized Alkaline platform
(December 12, 2025 - Oslo, Norway) Nel ASA (Nel, OSE: NEL) is pleased toannounce that following a seven-year development program, and now a successfulstart-up and production of clean hydrogen on the Next Generation PressurizedAlkaline prototype, the Board of Directors has taken the final investmentdecision to begin construction on up to 1 GW of production capacity for thistechnology platform in the Herøya facility, Norway. The project is supportedbythe EU Innovation Fund.
Development of the Next Generation Pressurized Alkaline system was initiatedin2018 and after rigorous testing of various smaller stacks, Nel has nowcompletedfull-scale testing of the prototype at Herøya Industripark, Norway, validatingmarket-leading system efficiency. The company expects to launch the systemcommercially in the first half of 2026 and be able to deliver at scale in2027.
Building on 100 years of technology experience, Nel's Next GenerationPressurized Alkaline platform delivers a breakthrough in clean hydrogeneconomics, dramatically reducing system CAPEX and improving energy efficiency,driving down levelized cost of hydrogen (LCOH). This leap is expected toimproveoverall hydrogen production economics, and bridge critical funding gaps forhydrogen installations.
"Our new solution is extremely important for Nel as a company, but also fortheclean hydrogen industry as a whole. A significantly improved levelized cost ofhydrogen is expected to unlock business cases that were previously not viablewithout significant subsidies," says Håkon Volldal, President and CEO of Nel.
The platform is based on a fully modularized, skid-based design where everymodule is pre-fabricated and factory-tested before shipment in standardcontainer skids. This approach dramatically simplifies engineering, logistics,and installation and is expected to transform complex projects intostreamlinedproduct deliveries. The system is designed to operate reliably outdoors, wherecosts and deployment complexity are further reduced as no dedicated buildingconstruction is required.
Nel has been granted up to EUR 135 million in support from the EU InnovationFund to industrialize the Next Generation Pressurized Alkaline platform,enabling a total annual production output of 4 GW. This funding covers up to60%of relevant CAPEX and operational costs related to industrialization.
The initial 1 GW of production capacity is estimated at an investment of aboutNOK 300 million before grants. The EU grant is milestone based and thisinvestment decision is expected to unlock in excess of EUR 10 million as afirstpayment. The CAPEX is expected to be incurred throughout 2026 and 2027.Overall,the CAPEX for this platform is significantly lower than for atmosphericalkalineproduction lines.
Following the commercialization and industrialization of the pressurizedalkaline solution the company is looking into the book values of the two 500MWatmospheric alkaline production lines currently idling at Herøya.
ENDS
For additional information, please contact:Kjell Christian Bjørnsen, CFO, +47 917 02?097Wilhelm Flinder, Head of IR, Communications & Marketing +47 936 11 350
About Nel ASA | www.nelhydrogen.comNel has a history tracing back to 1927 and is today a leading pure playhydrogenelectrolyser technology company with a global presence. The companyspecializesin Alkaline and PEM technology for production of renewable hydrogen. Nel'sproduct offerings are key enablers for a green hydrogen economy, making itpossible to decarbonize various industries such as transportation, refining,steel, and ammonia.
This information is subject to a duty of disclosure pursuant to Section 5-12ofthe Norwegian Securities Trading Act. This information was issued as insideinformation pursuant to the EU Market Abuse Regulation, and was published byWilhelm Flinder, Head of Investor Relations, Communications and Marketing, atNel ASA on the date and time provided.
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