Wind turbine manufacturer Nordex has announced the formation of two new business units to enter the green hydrogen sector.

The first, a joint venture (JV) with Spanish infrastructure company Acciona, will focus on the development of green hydrogen production primarily using onshore wind in locations not connected to conventional power grids. The company plans to develop exclusive large-scale projects at a minimum of 1GW per development.

Nordex claims it has already built up a pipeline of projects with a particular focus on the US and Latin America. The company aims to develop at least 500,000t/yr of green hydrogen production capacity within the next decade, with the first projects to be constructed in 2027.

€497.8mn – Nordex consolidated net loss in 2022

The second business is a JV with Sodena, an investment arm of Spain’s Navarre province, to develop electrolysers, with the expectation that demand will grow to 400GW by 2030. The JV will invest €15mn ($16.4mn) toward R&D and first deployments.

“With two joint ventures, the Nordex Group is establishing a presence in the hydrogen value chain, while, in parallel, continuing the company’s strategy of focusing on a low risk profile,” says the firm’s CEO, Jose Luis Blanco.

The wind turbine manufacturer has struggled over recent years, with consolidated net losses deepening to €497.8mn last year from €230.2mn the year before. However, some analysts are bullish about Nordex’s prospects with the shift toward hydrogen.

“It is a great pivot in Nordex Group’s strategy,” says Shashi Barla, director at consultancy Brinckmann. “The green hydrogen project development coupled with electrolyser manufacturing will provide Nordex competitive advantage.”

He notes that the company had previously “leveraged its project development in the wind business positively before divesting to [German energy firm] RWE” in a €400mn deal closed in 2020.

“The company’s move to combine the hardware, project development and off-grid applications will prove a winning formula in the long run,” he adds. However, while other wind turbine manufacturers are exploring green hydrogen, most—such as Siemens Gamesa and Vestas—are focused on integrating electrolysers with their wind turbines, rather than dedicated electrolyser manufacture.

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Author: Polly Martin