Press release

Nel ASA: Receives 4.5 MW electrolyzer purchase order for fossil free steel production

(Oslo, 25 April 2019) Nel Hydrogen Electrolyser, a subsidiary of Nel ASA (Nel, OSE:NEL), has received a purchase order for a 4.5 megawatt alkaline electrolyzer solution from Hybrit Development AB a joint venture owned by SSAB, LKAB and Vattenfall. The solution will be used for a pilot which aim is to create a fossil free steel production for the future.

“Being chosen to supply electrolyzers to the first phase of the HYBRIT project is a true honor. It's encouraging to see the partners behind HYBRIT leading the way in the effort to decarbonize the steel industry; one of the most CO2-intensive industries globally today. In this important benchmark project, the HYBRIT-partners are determined to change the reliance on coal and move to a renewable, fossil free future,” says Henning Langås, Sales Director Alkaline Electrolyzers.

The pilot plant for fossil free steel production will operate in Luleå, Sweden from 2021 – 2024, followed by a demonstration phase, with target of full-scale implementation by 2035. The parties have decided not to disclose the value of the contract for the pilot plant.

HYBRIT (Hydrogen Breakthrough Ironmaking Technology) is an initiative between SSAB, LKAB, and Vattenfall, with the aim to develop the world’s first fossil free ore-based steelmaking technology, where coal will be replaced by fossil-free hydrogen. The steel industry is currently one of the highest carbon emitting industries, accounting for up to 7% of global CO2-emissions. If successful, the HYBRIT project can lead to a reduction of Sweden’s CO2 emissions by 10% and will consume approximately 15 TWh of fossil-free electricity.

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