Norway's Nel to supply 60 MW of electrolysers to Lhyfe of France

London — Nel is to deliver up to 60 MW of electrolyzers to Lhyfe Labs of France to produce decarbonized hydrogen for various purposes, the Norwegian manufacturer said Tuesday.

The framework agreement follows a Eur1 million ($1.1 million) purchase of one A150 alkaline electrolyser in March, to be used to produce hydrogen for a fleet of buses in Bouin, France.

The latest agreement covers another 20 electrolysers, equal to around 60 MW, to be bought over the next four years under similar terms and conditions.

The first electrolyser is to be installed early 2021 next to a wind farm at Bouin, 50 km southwest of Nantes.

"The electrolysers will primarily be alkaline, and of various sizes," Nel's head of investor relations Bjorn Simonsen told S&P Global Platts.

The first delivered for the Bouin buses was 0.7 MW in size, capable of producing 150 cubic meters per hour of hydrogen, he said.

Lhyfe's business model is to feed electrolysers from local renewable energy sources to ensure produced hydrogen is "green".

Produced hydrogen would then be delivered to service stations and depots, to be used to power light vehicles, buses, heavy duty trucks, forklifts as well for industrial processes.

"We are happy to see that the long-term outlook for hydrogen remains positive, despite current challenges, including supply chain and travel restrictions affecting production and deployment," Nel CEO Jon Andre Lokke said.

Nel produces alkaline and PEM electrolysers, using electricity to split water into hydrogen and oxygen.

If the electricity used is from a renewable source, the hydrogen is deemed to be decarbonized and is referred to as green.

S&P Global Platts last assessed the price of alkaline electrolysis-derived hydrogen (Netherlands, including capex) April 17 at Eur2.14/kg.