Hydrogen technology firm Nel has signed a capacity reservation agreement with an undisclosed US energy company for the delivery of 16 hydrogen fuelling stations to be deployed in the US.

Nel will now reserve capacity at its factory and start sourcing long-lead items for the contract.

The manufacturing of the equipment at Nel’s factory in Denmark will begin when a final purchase order—estimated to be worth c.$17mn—is signed.

“We look forward to providing our hydrogen fuelling equipment to this important client and contributing to the deployment of hydrogen fuelling infrastructure in the US,” says Robert Borin, senior vice-president of Nel’s fuelling division.

$17mn – Value of contract

Delivery of the equipment is scheduled to start in Q4 2023 and run throughout 2024.

Nel is increasingly focusing its operations on the US as the hydrogen market starts to accelerate in North America. The firm noted in its Q3 results forecast that two of its biggest-ever contracts, signed during the most recent quarter, were for projects in the US.

Nel has two key divisions: its electrolyser division, which makes electrolysers to produce green hydrogen, and its fuelling division, which makes fuel stations to distribute the fuel.

The fuelling division has had a low order intake for several quarters and saw revenues of just $3mn in the third quarter of 2022, compared with $15mn for the electrolyser division.

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Author: Tom Young