Nel has secured a 120MW electrolyser order from German green hydrogen developer HH2E for a project in Lubmin, on Germany’s Baltic coast.
In total, the expected order is worth more than €30m, which will only be made binding with the signing of the final purchase contract, conditional on completion of a FEED study, which both companies have signed a contract for.
The final purchase contract is expected to take place in the first half of 2023.
The renewable power used to produce the green hydrogen will be sourced from additional offshore as well as onshore generation capacity.
Nel’s alkaline electrolyser will be installed with a battery, to enable constant production of green hydrogen from renewable power.
The Lubmin plant will have a capacity to produce around 6000 tonnes of green hydrogen per year by 2025.
A second-stage expansion is planned to increase capacity to over 1GW.
Construction of the first phase of the plant in Lubmin is to begin this year, with commissioning planned for 2025.
Commissioning of the second stage is scheduled for 2030.
Alexander Voigt, Co-founder and board member of HH2E, said: “Our original plan to establish 4GW of green hydrogen production capacity by 2030 in Germany is being implemented at a rapid pace and well within our reach.
“One of the prerequisites for reaching our growth ambitions is the availability of high-quality electrolysers in Europe, such as the ones that Nel will supply.
“We are convinced that Nel has the capabilities, technology, and experience to de-risk our projects and execute on schedule.”