Nel CEO says US to be among cheapest places to produce clean hydrogen

The head of Norwegian pure-play hydrogen technology company Nel ASA (OSE:NEL) expects the US to establish itself as a leader in clean hydrogen production now that its historic climate bill is one step away from becoming law.

On Friday, the US House of Representatives passed the Inflation Reduction Act (IRA), which provides for USD 369 billion (EUR 359bn) in energy security and climate change investments. When it comes to clean hydrogen in particular, it provides tax credits of up to USD 3 per kg.

Now, the legislation only needs President Joe Biden’s signature in order to become law.

Hakon Volldal, CEO of Nel, expressed his satisfaction with this development, noting that just two weeks ago the bill “looked dead” but is now “alive and kicking”. Volldal also stated that he sees the US becoming “one of the cheapest places in the world to produce clean hydrogen.”

Last month, Nel booked its biggest electrolyser supply order to date, involving the delivery of a 200-MW stack for an industrial green hydrogen project in the US. The facility should go live in 2024.

"What makes this record order particularly special is that it represents a change in market dynamics. The customer has secured power supply over 20 years, and end-product demand over the same time period. Similar long-term prospects will only inspire further investment in green hydrogen and related infrastructure," Volldal commented today.

(USD 1 = EUR 0.972)

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