- Nel will design, construct, and maintain hydrogen plants in France, starting with a 100 MW plant worth NOK 450 million.
- The project aims to inject hydrogen into natural gas pipelines, with a potential expansion to 700 MW by 2025.
- The first plant will be developed from 2018-2020, with a total contract value of around NOK 3,150 million for all plants.
- Nel plans to expand production capacity in Norway and France to meet the contract requirements.
Framework Agreement Details
Nel ASA has entered a framework agreement with H2V PRODUCT, a subsidiary of SAMFI-INVEST Group, for the design, construction, and maintenance of industrial-scale renewable hydrogen production plants in France. The first 100 MW hydrogen plant represents a contract value of approximately NOK 450 million, with potential expansion to a total of 700 MW across six additional plants, bringing the total contract value to around NOK 3,150 million.
Project Scope and Goals
The project aims to reduce CO2 impact by injecting green hydrogen into natural gas pipelines as a substitute for natural gas. The initial plant will feature 40 electrolysers and will be located in Les Hauts de France and Normandie Régions, where site exclusivity has already been secured.
Timeline and Development
The first hydrogen plant will be developed from 2018 to 2020. The target is to add additional lines between 2020 and 2025, significantly increasing capacity. The final agreement on the delivery schedule is expected in the second half of 2017, with a formal investment decision related to capacity expansions anticipated by the end of 2017.
Production Capacity Expansion
To meet the contract requirements, Nel plans to expand its production capacity at Notodden, Norway, during 2018, with additional supporting capacity in France. By adding production equipment and increasing operator shifts, Nel aims to increase its production capacity by 7 to 8 times with relatively limited investments.
