Nel ASA received purchase order from Ovako for 20MW alkaline electrolyser

Nel Hydrogen Electrolyser AS, a subsidiary of Nel ASA, has obtained a purchase order from Ovako, a renowned European maker of engineering steel, for a 20MW alkaline water electrolyser.

The electrolyser will be put in Ovako’s existing factory in Hofors, Sweden, which was the first in the world to heat steel prior to rolling and hot forming with hydrogen. The fossil-free hydrogen will be utilized in place of the fossil propane gas currently used to heat the site’s furnaces.

“We are very excited to announce the delivery of electrolyser equipment to Ovako, and this groundbreaking project. There is huge potential in reducing CO2-emissions from steel-heating processes through the use of green hydrogen, there are numerous similar sites with equally large potential for decarbonization across Europe and the rest of the world. We look forward to working with Ovako and its partners to further develop fossil-free steel production in all the sites where this will be relevant” says Jon André Løkke, CEO at Nel.

Nel has received a purchase order from Ovako, a renowned European maker of engineering steel, for a 20MW alkaline electrolyser system. The contract is worth roughly EUR 11 million, and the equipment is planned to be delivered by the end of 2022, with the first hydrogen production beginning in 2023. The electrolyser will generate oxygen and hydrogen for use in Ovako’s steel heating process, representing a significant step toward zero-carbon steel production. Ovako’s switch to hydrogen will enable it to significantly reduce CO2 emissions from steel manufacturing in Hofors, from already low levels.

“In June we announced our collaboration with the Volvo Group, Hitachi Energy, H2 Green Steel and Nel Hydrogen with the purpose to invest in fossil-free hydrogen in Hofors. An investment that also got the support from the Swedish Energy Agency. We are now very pleased to have reached this important milestone of the project. The electrolyser technology will enable us to eliminate CO2 for heating steel before rolling”, says Rickard Qvarfort, President Business unit Hofors.