Nel Hydrogen US, a subsidiary of Nel ASA, has received a purchase order for PEM electrolyzer equipment with total value of about $7 MM. The PEM electrolyzer equipment will be used to produce hydrogen at a public utility in the U.S.

Nel Hydrogen has received an order for PEM electrolyzer equipment from Douglas County Public Utility District (DCPUD), in East Wenatchee, WA, 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 electrolyzer can utilize 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 Nel's Chief Commercial Officer, Todd Cartwright. "The flexible operation of our PEM electrolyzers 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," said 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 containerized PEM equipment, where the stacks will be produced at Nel's manufacturing facility in Wallingford, Connecticut. The PEM electrolyzers will be operational in the first half of 2027.