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NEL ASA: Nel ASA: Biden spending plans set to put USA in lead for clean hydrogen

The Inflation Reduction Act will provide tax credits of up to $3 per kg of clean hydrogen

OSLO, Norway, Aug. 15, 2022 /PRNewswire/ -- "This is a fantastic development - and one that completely transforms the outlook for green hydrogen in the USA. Only two weeks ago, Biden's bill looked dead. Now it's alive and kicking, we can say that the USA is going to be one of the cheapest places in the world to produce clean hydrogen," says Håkon Volldal, CEO of Nel.

The much-anticipated passing of the bill through the House of Representatives follows significant progress in the North American market for Nel, with the company's biggest electrolyser order to date announced in July this year. The 200MW stack, worth €45m ($46m) and potentially twice that amount with additional hardware, will go live in 2024.

"What makes this record order particularly special is that it represents a change in market dynamics. The customer has secured power supply over 20 years, and end-product demand over the same time period. Similar long-term prospects will only inspire further investment in green hydrogen and related infrastructure," Volldal says.

The coming Inflation Reduction Act is the latest in a series of political measures that are boosting prospects for green hydrogen. The EU's RePowerEU initiative aims for 10 million tonnes of green hydrogen production within the bloc, and a further 10 million tonnes to be imported, by 2030.

Multiple nations now have national hydrogen plans. Germany's is in the lead with a commitment to billions of euros of investment both domestically and internationally.

International political momentum and investor confidence supported Nel's recent decision to double its Herøya plant output, with 1GW coming online by early 2024.

"The international picture shows the power of market-based incentives and government support for green hydrogen. We of course hope to see more of the same both in Norway and overseas in the near future," Volldal says.

For further information, please contact:

Wilhelm Finder, Head of Investor Relations, +47 936 11 350

Lars Nermoen, Head of Communications, +47 902 40 153

About Nel ASA | www.nelhydrogen.com

Nel is a global, dedicated hydrogen company, delivering optimal solutions to produce, store, and distribute hydrogen from renewable energy. We serve industries, energy, and gas companies with leading hydrogen technology. Our roots date back to 1927, and since then, we have had a proud history of development and continuous improvement of hydrogen technologies. Today, our solutions cover the entire value chain: from hydrogen production technologies to hydrogen fueling stations, enabling industries to transition to green hydrogen, and providing fuel cell electric vehicles with the same fast fueling and long range as fossil-fueled vehicles - without the emissions.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/nel-asa/r/nel-asa--biden-spending-plans-set-to-put-usa-in-lead-for-clean-hydrogen,c3614005

The following files are available for download:

https://mb.cision.com/Main/115/3614005/1614645.pdf

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