Nel to provide 2.5 MW PEM electrolyzer for hydrogen project in Scotland

Nel Hydrogen US, a subsidiary of Norwegian company Nel, has received a purchase order for one 2.5 MW containerized proton exchange membrane (PEM) electrolyzer for the Aberdeen Hydrogen Hub project in the north-east of Scotland.

This scalable green hydrogen production, storage and distribution facility, powered by renewable energy, is being delivered through a joint venture between UK energy major BP and Aberdeen City Council.

Phase 1 of the project is expected to involve building a hydrogen refueling facility for buses, cars, vans and trucks, while future phases could, reportedly, see production scaled up through further investment to supply larger volumes of green hydrogen for rail, freight and marine, as well as supply of hydrogen for heat and potentially export.

A planning application for the Aberdeen Hydrogen Hub was submitted in March 2023 and planning permission was granted at the end of June 2023. The final investment decision (FID) for the project was agreed in July 2024.

As disclosed, Hydrasun, a UK provider of integrated fluid transfer, power and control products, awarded the electrolyzer contract following its successful bid to design and integrate the hydrogen refueling station and associated infrastructure.

To note, Hydrasun has developed solutions for both transportation and industrial hydrogen applications, reportedly completing over 40 projects across the UK, Scandinavia and Europe.

Håkon Volldal, Nel’s President and CEO, commented: “We are excited that Hydrasun has selected Nel for this meaningful project. Hydrasun is a professional enabler with quality backing, and we look forward to our collaboration, supporting them with fast-to-market and reliable electrolyser equipment.”

Neil Thompson, CEO of Hydrasun, stated: ”Awarding the initial contracts for major equipment packages in the Aberdeen Hydrogen Hub project is a key milestone for the hydrogen market and a boost for the supply chain, highlighting our joint capabilities in delivering hydrogen projects in the UK.”

In other news, in February 2025, Nel formally signed a €135 million grant agreement with the EU’s Innovation Fund to support the industrialization of its next-generation electrolyzer technology.

As per the information given in October 2024, this technology is in the prototype stage, and the initial build-out is planned for an annual capacity of 1-2 GW, utilizing existing space at the company’s Herøya facility in Norway.

It is important to mention that, in January 2025, Nel decided to temporarily halt production at the alkaline electrolyzer production facility in Herøya. The decision follows lower-than-expected order intake in 2023 and 2024, the company revealed, adding that as a result, there is a limited need to produce new alkaline electrolyzer equipment in the near-term.

In 2024, Nel pronounced itself as a company solely dedicated to developing and delivering electrolyzers to produce renewable hydrogen. At the same time, the company’s former fueling division was spun out and listed on the Oslo Stock Exchange as Cavendish Hydrogen.