H2 View understands the project, which the Nel equipment is destined for, is set to be fully funded by private investors and has received ‘significant’ state and local government incentives.
With the existing developments already in place at the project, Nel has said the customer has established a 20-year off-take commitment from local partners in addition to a 20-year electricity power purchase agreement (PPA).
Production and delivery of stacks is planned from February 2023 until mid-2024 from Nel’s Herøya electrolyser production facility.
The Norwegian company has said it could have the opportunity to provide additional ‘balance-of-plant’ equipment for the project, pending an ongoing engineering study.
Håkon Volldal, CEO of Nel, said, “We are truly excited to announce Nel’s largest purchase order to date. This project will showcase Nel’s large-scale delivery and execution capabilities and become a valuable reference for future large-scale contracts.
“It will have a substantial, positive impact on Nel’s financials, electrolyser product and production cost, technology development and scale-up plans.”
In May (2022), Nel revealed it has set its sights beyond its recently inaugurated Herøya plant, with scope for a further large-scale electrolyser production site outside of Norway.
Read more: Nel sets sights beyond Herøya; sees strong outlook for green hydrogen
Tom Skoczylas, Regional Sales Manager for Nel Hydrogen US, commented, “This project represents an excellent opportunity for Nel to demonstrate its hydrogen technology and scaling capabilities, crucial to meet the rapid growing demand we see for green hydrogen.
“We are very happy to be elected for this ground-breaking project where Nel was chosen based on maturity of technology and proven electrolyser plant experience.”
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