- Nel ASA reports a 12% increase.
- New production line to cost about $35.9m.
The Norwegian pure-play hydrogen technology company Nel ASA reported a yearly 12% increase in second-quarter (Q2) revenues. It announced a decision to quadruple the manufacturing capacity of alkaline electrolyser stacks at its Heroya factory to almost 1 GW.
Following its announcement a few weeks ago on an order it got in the US for the supply of 200 MW of alkaline electrolyser stacks, the business has decided to invest in a second production line at Heroya. This is the largest order ever placed by the corporation, according to Nel at the time.
“The recent 200 MW contract will not be a one-off, and as we see a potential for additional large orders in the foreseeable future, we have decided to expand our production capacity,” chief executive Hakon Volldal said in a statement today.
The fully-automated factory in Heroya was opened in April 2022 and currently has a production capacity of 500 MW. Nel says that it is expandable to 2 GW. Adding a new production line there would cost about $35.9m and is expected to happen by April 2024.
As per Nel’s Q2 performance, it said its top line climbed to $18.9m on the year as the company continues to increase electrolyser system deliveries according to plan. However, its loss before interest, tax, depreciation and amortisation deepened to NOK 197 million.
Nel noted that the continued ramp-up of the business in a drive to pursue growth negatively affects profitability. At the same time, supply chain challenges have led to a rise in raw materials expenses and somewhat delayed deliveries. At the same time, supply chain challenges have led to a rise in raw materials expenses and somewhat delayed deliveries.