Nel Hydrogen U.S., a subsidiary of Nel ASA (Nel), has received a purchase order for two containerized proton exchange membrane (PEM) electrolyzer units for about $7 MM. The two MC500 electrolyzers, 2.5 MW each, will be used to produce H₂ for a new steel mill in the U.S.

The undisclosed customer, one of the largest U.S. steel producers, already uses Nel's PEM electrolyzers to generate H₂ at two other sites in the U.S.

"We are delighted to receive a purchase order from an existing customer, as it signifies their satisfaction with the performance of our electrolyzers," said Nel's Chief Commercial Officer, Todd Cartwright.

"We continue to see an increasing demand for our containerized PEM electrolyzers for smaller installations as this reliable turn-key concept offers easy outdoor installation and operation," he said. 

This is a firm purchase order for two PEM MC500 units that will be produced at Nel's manufacturing facility in Wallingford, Connecticut.