Nel ASA announced on December 12, 2025, that its Board of Directors has made the final investment decision to begin construction on up to 1 GW of production capacity for its Next Generation Pressurized Alkaline technology platform at the Herøya facility in Norway. The decision follows a seven-year development program and successful start-up and production of clean hydrogen on the Next Generation Pressurized Alkaline prototype.

Technology Development and Testing

Development of the Next Generation Pressurized Alkaline system was initiated in 2018. After rigorous testing of various smaller stacks, Nel has completed full-scale testing of the prototype at Herøya Industripark, Norway, validating market-leading system efficiency. The company expects to launch the system commercially in the first half of 2026 and be able to deliver at scale in 2027.

Building on 100 years of technology experience, Nel's Next Generation Pressurized Alkaline platform delivers a breakthrough in clean hydrogen economics, dramatically reducing system CAPEX and improving energy efficiency, driving down the levelized cost of hydrogen (LCOH). This leap is expected to enhance the economics of overall hydrogen production and bridge critical funding gaps for hydrogen installations.

Platform Design and Capabilities

The platform is based on a fully modular, skid-based design, with every module pre-fabricated and factory-tested before shipment on standard container skids. This approach dramatically simplifies engineering, logistics, and installation and is expected to transform complex projects into streamlined product deliveries. The system is designed to operate reliably outdoors, where costs and deployment complexity are further reduced as no dedicated building construction is required.

EU Innovation Fund Support

Nel has been granted up to EUR 135 million in support from the EU Innovation Fund to industrialize the Next Generation Pressurized Alkaline platform, enabling a total annual production output of 4 GW. This funding covers up to 60% of relevant CAPEX and operational costs related to industrialization. The EU grant is milestone based and this investment decision is expected to unlock in excess of EUR 10 million as a first payment.

The initial 1 GW of production capacity is estimated at an investment of about NOK 300 million before grants. The CAPEX is expected to be incurred throughout 2026 and 2027. Overall, the CAPEX for this platform is significantly lower than for atmospheric alkaline production lines.

Leadership Perspective and Industry Impact

Håkon Volldal, President and CEO of Nel, stated that the new solution is extremely important for Nel as a company and for the clean hydrogen industry as a whole. He noted that a significantly improved levelized cost of hydrogen is expected to unlock business cases that were previously not viable without significant subsidies.

Following the commercialization and industrialization of the pressurized alkaline solution, the company is looking into the book values of the two 500 MW atmospheric alkaline production lines currently idling at Herøya. The EU Innovation Fund supports the project.

Connect with Decision-makers about the Latest Green Hydrogen (H2) Production Plant Projects in Norway for business Opportunities.

Subscribe to our database on Green Hydrogen (H2) Production Plant Projects and Tenders in Norway to get access to reliable and high-quality insights on upcoming, under-construction, and completed Green Hydrogen (H2) Production Plant Projects across the world or in your desired geographical location.

Our user-friendly platform provides essential details, timely updates, key stakeholder contact information, and business opportunities tailored for engineering companies, industry professionals, investors, and government agencies.