Nel ASA greenlights 1 GW alkaline electrolyser plant in Norway

Nel ASA is moving forward with industrializing its next generation pressurized alkaline platform in Herøya, Norway, with an initial 1 GW production capacity. This follows successful full-scale prototype testing, which validated market-leading system efficiency and is supported by a €135 million grant from the EU Innovation Fund. The company anticipates a commercial launch in the first half of 2026 and scaled delivery in 2027.

The new modular, skid-based system is designed to significantly reduce system CAPEX, improve energy efficiency, and lower the levelized cost of hydrogen, making previously unviable business cases feasible without substantial subsidies. The initial 1 GW investment is estimated at NOK 300 million before grants, with CAPEX expected throughout 2026 and 2027.

This strategic move is expected to unlock over €10 million as a first payment from the milestone-based EU grant. Nel will also review the book values of its two 500 MW atmospheric alkaline production lines currently idling at Herøya.