A Game-Changing Grant for Electrolyzer Innovation
Norwegian clean energy pioneer Nel has just inked a monumental €135 million grant agreement with the EU’s Innovation Fund, marking a pivotal moment in the race to scale green hydrogen production. This funding will turbocharge the industrialization of Nel’s next-generation electrolyzer technology, a breakthrough that could redefine Europe’s energy landscape.
Currently in the prototype phase, the technology is set to roll out with an initial annual capacity of 1-2 GW, leveraging existing infrastructure at Nel’s Herøya facility in Norway. But this is just the beginning. The EU’s phased support, combined with Nel’s own investments, aims to scale production to a staggering 4 GW of pressurized electrolyzer equipment.
From Prototype to Powerhouse: The Road Ahead
The journey to full-scale production isn’t without its hurdles. Nel’s final investment decision hinges on two critical factors: successful testing of the prototype and pilot stages, and market acceptance of the new technology. “This funding represents a significant milestone in our efforts to scale green hydrogen production, bolster technological advancements, and contribute to Europe’s climate goals,” the company stated.
However, the path hasn’t been entirely smooth. In January 2025, Nel made the tough call to temporarily halt production at its alkaline electrolyzer facility in Herøya. The decision followed lower-than-expected order intake in 2023 and 2024, reflecting a limited near-term demand for alkaline electrolyzer equipment.
Nel’s Bold Vision: A Hydrogen-Only Future
2024 marked a transformative year for Nel as the company doubled down on its mission to revolutionize renewable hydrogen production. Shedding its former fueling division, Nel spun out Cavendish Hydrogen, which now trades independently on the Oslo Stock Exchange. This strategic move positions Nel as a pure-play electrolyzer innovator, laser-focused on delivering cutting-edge solutions for a greener tomorrow.
With the EU’s backing and a clear vision for the future, Nel is poised to lead the charge in the global green hydrogen revolution. As the world races to meet ambitious climate targets, this Norwegian trailblazer is proving that the future of energy is not just clean—it’s hydrogen-powered.
