Howden, Nel agree to accelerate supply of hydrogen compressor solutions

By Keefe Borden25 June 2021

Howden and Nel have reached an agreement to combine Howden’s compressors with Nel’s hydrogen electrolyzers.

A division of Nel ASA has signed an agreement with Howden to combine Howden’s compressors with Nel’s electrolyzers to produce hydrogen.

“We are pleased to enter into this frame agreement with Howden, which ties into the ambitions we announced at our capital markets day and reiterated in our Q1 2021 report around forming strategic partnerships. Working with Howden allows us to optimize our offerings towards existing and future customers,” said Jon André Løkke, chief executive officer of Nel.

The non-exclusive agreement with Howden is an important step towards achieving cost target of green hydrogen production at US$1.5/kg, said Nel. The two companies will work closely together to develop cost competitive hydrogen compressor systems for Nel’s electrolyzers.

“We are delighted to enter into this agreement with Nel as it illustrates achievements already made in integrating Howden’s hydrogen compression solution with Nel’s electrolysers to lower the life-cycle cost of production and accelerate the adoption of hydrogen as a zero-carbon fuel,” said Howden CEO Ross Shuster.

The agreement between the two companies is designed to support the European Union’s Hydrogen Strategy and its ambition to install at least six gigawatts (GW) of renewable hydrogen electrolyzers in the EU by 2024 and at least 40 GW by 2030.

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