Nel ASA Sets in Motion a Pure Play for Hydrogen Dominance

Since its founding in 1927, Nel ASA has been at the forefront of hydrogen technology, evolving into a key player in the global hydrogen market. The company excels in developing electrolyser technology for generating renewable hydrogen and supplying hydrogen fueling infrastructure for vehicles, contributing significantly to the transition towards a green hydrogen economy. Nel’s technological advancements are crucial for the decarbonization efforts across several sectors, including transportation, refining, steel production and ammonia manufacturing.

Cavendish Hydrogen: A New Chapter in Hydrogen Fueling Begins

Earlier this year, the Norwegian company announced its intention to establish Cavendish Hydrogen by spinning off its Fueling division. Named after Henry Cavendish, the discoverer of hydrogen, this move aims to form two distinct entities, each targeting leadership in their respective areas of the hydrogen industry.

Jon André Løkke, appointed Chair of Cavendish Hydrogen, shared, “This strategic decision empowers both entities to intensify their focus on core strengths, spurring further innovation and enhancing market reach.”

Leadership and Guidance for Cavendish Hydrogen

The governance team for Cavendish Hydrogen is carefully selected to lead the company into its future, including:

• Jon André Løkke (Chair)
• Mimi K. Berdal (Board Member)
• Vibeke Strømme (Board Member)
• Allan Bødskov Andersen (Board Member)
• Kim Søgård Kristensen (Board Member)

Robert Borin steps in as CEO and Marcus Halland as CFO.

Preparation for Spin-Off Through Internal Reorganization

To facilitate the spin-off, Nel ASA has reorganized internally, transferring assets, rights, liabilities, and shares of relevant subsidiaries to Cavendish Hydrogen. Pending the spin-off’s final approval, Cavendish Hydrogen shares will be distributed as dividends in kind to Nel shareholders.

Future Prospects: A Dual Focus on Innovation

If the spin-off proceeds as planned, it is expected to be completed by the end of the second quarter of 2024. Post spin-off, Nel ASA will continue to focus on its Electrolyser division, retaining its listing on the Oslo Stock Exchange under the ticker “NEL.” This strategic move underscores Nel ASA’s commitment to advancing hydrogen technology on multiple fronts. By creating two specialized entities, the company aims to accelerate innovation and enhance its competitive position in the growing hydrogen market.

Renewable Hydrogen: The Future’s Number One Energy Carrier

Nel ASA firmly believes that renewable hydrogen will become the world’s primary energy carrier. As the global demand for sustainable energy sources intensifies, the company has highlighted several key factors that underscore the immense potential of renewable hydrogen:

• Replacement of Oil and Gas: The world urgently needs an alternative energy carrier to replace polluting fossil fuels like oil and gas.
• Highest Energy Density: Hydrogen stands out with the highest energy density among all elements, making it an efficient energy carrier.
• Green Production through Electrolysis: Hydrogen can be produced from water using electrolysis powered by renewable energy sources, ensuring a clean and sustainable production method.
• Infinite Renewable Energy Access: The availability of renewable energy, such as solar and wind, is practically limitless.
• Grid Capacity Limitations: Current electric grids lack the capacity to handle the entire future energy demand. Hydrogen can alleviate this pressure.
• Stable Energy Supply: There is a growing need for a stable energy supply that can offset the inherently fluctuating nature of renewable energy production.
• Energy Storage Solutions: Large-scale adoption of renewable energy is contingent upon effective energy storage solutions, with hydrogen playing a critical role in this paradigm.

In Conclusion

Nel ASA’s strategic maneuver to spin off its Fueling division into Cavendish Hydrogen marks a pivotal moment in the company’s legacy of hydrogen innovation. By specializing in distinct market segments, both companies are well-positioned to foster significant progress within the hydrogen economy, delivering extensive benefits across various industries. Stay tuned for more updates on this transformative journey.