Nel Hydrogen US, a subsidiary of Norway-based Nel, has landed a significant contract to supply a 2.5 MW proton exchange membrane (PEM) electrolyzer for the Aberdeen Hydrogen Hub project. The venture, backed by UK energy giant BP and Aberdeen City Council, aims to build a scalable green hydrogen production and distribution facility in northeast Scotland.
A Strategic Hydrogen Push for Aberdeen
This ambitious project is being developed in phases, with the first phase focused on establishing a hydrogen refueling facility for buses, trucks, vans, and cars. Subsequent phases could see an expansion in hydrogen production, enabling supply for industries like rail, freight, and marine, as well as for heating and potential export.
A key milestone was reached in mid-2023 when planning permission was granted, following a March 2023 application. By July 2024, the final investment decision (FID) was approved, marking the official go-ahead for construction and operation.
Hydrasun Takes the Lead in Project Integration
The electrolyzer contract was awarded by Hydrasun, a UK-based company specializing in integrated fluid transfer, power, and control solutions. Hydrasun secured the contract after successfully bidding to design and integrate the hydrogen refueling station and supporting infrastructure.
- Hydrasun has experience in over 40 hydrogen-related projects across the UK, Scandinavia, and Europe.
- The company provides solutions tailored for both transport and industrial hydrogen applications.
- The partnership with Nel highlights a push for fast and reliable electrolyzer deployment.
Håkon Volldal, CEO of Nel, expressed confidence in the collaboration, stating, “Hydrasun is a professional enabler with quality backing, and we look forward to supporting them with fast-to-market and reliable electrolyzer equipment.”
A Boost for the UK Hydrogen Market
Neil Thompson, CEO of Hydrasun, called the contract a significant milestone for the UK hydrogen sector. He noted that awarding major equipment packages for the Aberdeen Hydrogen Hub strengthens the domestic supply chain and showcases the capability of UK firms in delivering large-scale hydrogen projects.
Scotland has been at the forefront of green hydrogen development, aligning with the UK government’s push for net-zero carbon targets by 2050. The Aberdeen Hydrogen Hub is expected to play a crucial role in meeting regional clean energy goals and reducing dependency on fossil fuels.
Nel’s Expanding Hydrogen Portfolio
Beyond the Aberdeen project, Nel has been making headlines with its broader hydrogen initiatives. In February 2025, the company secured a €135 million grant from the EU Innovation Fund to accelerate industrialization of its next-generation electrolyzer technology. This funding will support prototype development and a planned expansion at the Herøya facility in Norway, targeting an annual production capacity of 1-2 GW.
A timeline of Nel’s key recent developments:
| Date | Event |
|---|---|
| Jan 2025 | Temporarily halted alkaline electrolyzer production at Herøya. |
| Feb 2025 | Signed €135 million grant agreement with the EU Innovation Fund. |
| July 2024 | Final investment decision for Aberdeen Hydrogen Hub approved. |
| June 2023 | Planning permission granted for Aberdeen Hydrogen Hub. |
| March 2023 | Planning application submitted for Aberdeen Hydrogen Hub. |
Industry Challenges and Future Prospects
Despite strong momentum, Nel faces challenges, including fluctuating order volumes. The company decided in early 2025 to temporarily halt production of alkaline electrolyzers at Herøya due to lower-than-expected demand in 2023 and 2024. However, Nel remains committed to renewable hydrogen, having restructured in 2024 to focus solely on electrolyzer technology. The former fueling division was spun off and separately listed as Cavendish Hydrogen on the Oslo Stock Exchange.
Nel’s strategy underscores the shifting landscape in hydrogen production. As government policies and corporate investments drive the industry forward, companies like Nel and Hydrasun are positioning themselves at the heart of this transformation.
