Nel Hydrogen US, a subsidiary of Nel ASA (Nel) has received a purchase order for PEM electrolyser equipment with total value of about US$7 million. The PEM electrolyser equipment will be used to produce hydrogen at a public utility in the US.
Nel Hydrogen has received an order for PEM electrolyser equipment from Douglas County Public Utility District (DCPUD), in East Wenatchee, Washington, US. DCPUD is a publicly regulated utility company that was instrumental in developing state legislation allowing utilities to produce and sell renewable hydrogen.
Instead of frequently ramping up and down the generators at the utilities hydroelectric project, the electrolyser can utilise excess power to help balance the grid. This reduces the need for mechanical adjustments, lowering wear and maintenance on the turbine units and associated equipment. The hydrogen produced can also be used for other high-value applications.
"We are excited to work with a visionary customer like DCPUD, as this will be the first green hydrogen plant we have sold that will be owned and operated by a public utility," said Todd Cartwright, Chief Commercial Officer at Nel Hydrogen. "The flexible operation of our PEM electrolysers is enabling the district to balance load with demand, in addition to producing a high value fuel."
"Our partnership with Nel Hydrogen will enable us to bring renewable hydrogen to our community," commented DCPUD General Manager, Gary Ivory. "This will benefit our Wells Hydroelectric Project and advance hydrogen adoption in our region."
This is a firm purchase order for containerised PEM equipment, where the stacks will be produced at Nel's manufacturing facility in Wallingford, Connecticut. The PEM electrolysers will be operational in 1H27.