H2 Logic, a subsidiary of NEL ASA, has entered into a contract for the purchase of a facility in Herning, Denmark for the development of a new large-scale production plant for hydrogen refueling stations. The factory will have an annual capacity to manufacture hydrogen refueling stations sufficient to support 200,000 new Fuel Cell Electric Vehicles (FCEV) annually.
With a total investment of NOK ~85 million (US$10.25 milion), including contingency, NEL intends to convert the facility into a state-of-the-art volume production facility for refueling stations based on lean manufacturing principles. When ramp-up and plant optimization is complete, the facility will have a name-plate production capacity of up to 300 refueling stations per year.
Leading global car manufacturers are introducing FCEVs into more markets and plan for growth in volumes towards 2020 and beyond. This requires an adequate capacity for manufacturing of hydrogen refueling stations to support a wider roll-out of hydrogen infrastructure.
The new production facility in Denmark will be prepared for the next generation refueling technology (H2Station) that will offer advances in areas such as increased refueling capacity and performance, reduced footprint and potential for significant cost reductions. The new H2Station technology has been designed for lean volume manufacturing which is essential to achieve sufficient scale benefits.
In contrast to many others, NEL is approaching the refueling station business in a mature and professional way. Even if a refueling station is relatively complex, it is just another piece of equipment that has to have a small footprint, high uptime, and low cost of ownership. This can only be achieved through modular design, standardization and volume production based on lean manufacturing principles – this is how we will add value to our customers.—Jon André Løkke, chief executive officer of NEL
Since 2011, H2 Logic has gained experience with volume manufacturing of hydrogen refueling stations, however, at a smaller scale. This has resulted in a market share in Europe of more than 30%.
H2 Logic will start to relocate to the new facility in the second half of 2016, and will complete the rebuild and relocation during 2017. The company has also secured 9000 m2 of expansion area adjacent to the Herning facility.