Nel ASA has been awarded a contract for delivery of 448 electrolyzers and associated fueling equipment to Nikola Motor Company (Nikola) as part of Nikola’s development of a hydrogen station infrastructure in the US for truck and passenger vehicles.
Under the multi-billion NOK (1 NOK = US$0.12) contract, to be deployed from 2020, Nel will deliver up to 1 GW of electrolysis plus fueling equipment. The company reiterates a potential major expansion of the production capacity at Notodden to accommodate the contract order.
We are immensely proud of announcing this 1 GW electrolyzer contract with Nikola for the exclusive delivery of 448 electrolyzers and supporting fueling equipment as part of their groundbreaking development of a hydrogen station infrastructure across the US.
The multi-billion NOK contract is by far the largest electrolyzer and fueling station contract ever awarded. It will secure fast and cost efficient fueling of Nikola’s fleet of hydrogen trucks, delivering support to major customers like Anheuser-Busch, as well as a growing fleet of Fuel Cell Electric Vehicles. We look forward to working with Nikola on developing the world’s largest, most efficient network of low-cost hydrogen production and fueling sites.—Jon André Løkke, Chief Executive Officer of Nel
Nel currently has two primary electrolyzer offerings:
A-Range Atmospheric Alkaline Electrolyzer. The Nel modular concept enables deliver of customized indoor hydrogen solutions for any application, configuration and size. Nel tailors each delivery to any customer requirement, from complete installation of the entire electrolyser plant, to delivery of specific modules according to customer preferences.
The three models range in capacity from as low as 50 to up to 485 Nm³ H₂/hr). Cell stack power consumption is down to 3.8 kWh/Nm³ H₂.
C-Range Containerized Alkaline Electrolyzer. The compact design is a turnkey solution, with an output pressure of 200 bar. Typical applications include hydrogen fueling stations and redistribution of hydrogen for industrial gas companies.
In late 2017, Nikola and Nel announced an exclusive partnership aimed at developing low-cost, renewable hydrogen production and fueling sites as part of a nationwide network of hydrogen stations, supporting Nikola’s vision of replacing the current fleet of diesel trucks in America with zero-emission hydrogen trucks.
Nel’s electrolyzers are efficient and reliable, making them a natural backbone for our station infrastructure. We’ll begin fleet testing the Nikola hydrogen electric semi-trucks in 2019. The first two stations will be installed in Arizona and California depending on permit timelines. The next 28 stations will be installed on each route outside of Anheuser-Busch’s Breweries or their distribution centers. Each station will produce 700 bar and will be compatible with class 8 trucks and consumer cars. This is an incredibly exciting time and we have now contractually set in motion the largest network of hydrogen in the world.—Trevor Milton, Chief Executive Officer of Nikola
The contract includes an initial order for a pre-engineering package of around US$1.5 million, where Nel will develop a station design, including electrolyzers, specifically made for fast fueling of Nikola trucks.
Nel will continue to work, in collaboration with Nikola, to finalize the detailed station design and other technology elements to be deployed for the commercial stations. Nikola has already placed an initial order amounting to more than US$9 million for two demo-stations for which delivery will commence towards the end of 2018.
Early in May, Nikola announced that Anheuser-Busch has placed an order for up to 800 Hydrogen-Electric Powered Semi-Trucks. To support the Anheuser-Busch fleet of trucks, Nikola and Nel would need to deploy around 28 stations. This order volume alone will have a revenue potential for Nel of more than US$500 million.
The electrolyzer stacks will be manufactured in Norway and fueling equipment in Denmark. However, other supporting components and sub-systems will be sourced locally in the US to reduce costs and minimize transportation needs.
We’re looking at a total contract volume which is many times higher than the current annual production capacity at Notodden. While we have not reached any conclusions on an expansion to accommodate the order, we want to reiterate our plans to develop the Notodden facility into the world’s largest electrolyzer stack manufacturing facility, aiming at a cost reduction of around 40%.—Jon André Løkke