Nel Hydrogen, a subsidiary of Nel ASA, has now received a firm purchase order from the undisclosed U.S. energy company for delivery of 16 H₂ fueling stations to be deployed in California, U.S.

The total value of the purchase order is about $24 MM, including the previously announced Capacity Reservation Agreement (CRA) fee of about $7 MM. The increase in total contract value from the CRA announcement in December relates to the inclusion of installation assistance and commissioning services, as well as service and maintenance agreements.

“We look forward to providing our H₂ fueling equipment to this important client and contributing to the deployment of H₂ fueling infrastructure in the U.S.," said Robert Borin, Senior Vice President, Nel Fueling Division.

“This contract reflects a significant commitment to H₂ in general, and to Nel in particular," said Håkon Volldal, CEO. "This record-size contract is a game changer for our Fueling division, amplifying the positive momentum throughout the entire Nel organization as we continue to execute our bigger-better-focused strategy."

Expected delivery of the first fueling equipment is scheduled in Q4 2023. In addition, Nel has entered into a framework agreement with the customer covering potential future purchase orders for fueling equipment.