[ industry update ]
Nel adjusts capacity to market demand Nel ASA and its subsidiaries have initiated a process to adjust capacity to market demand by reducing the workforce and temporarily halting production at the alkaline production facility in Herøya , Norway .
The company ’ s order intake in 2023 and 2024 fell short of expectations , and several customer projects are significantly delayed or at risk of being cancelled . In addition , Nel has initiated a process to retain control over delivered equipment as compensation for receivables overdue by more than one year . As a result , the company has limited need to produce new alkaline electrolyser equipment in the near term and will adjust its production and organisational capacity accordingly .
Nel has decided to halt production in Herøya temporarily . This will predominantly impact the Norwegian workforce in the alkaline business segment . The planned reductions will affect roughly 20 % of the fulltime employees reported at the end of the third quarter of 2024 . Approximately half of the reductions have already been executed in the fourth quarter of 2024 through voluntary resignations and termination of consultants .
“ The company remains well financed , and with these actions we will preserve cash while still being able to aggressively pursue sales opportunities and invest in technology development ,” said Kjell Christian Bjørnsen , CFO of Nel .
Worley wins FEED contract for green ammonia facility in Texas Worley has been selected by First Ammonia to deliver the front-end engineering design ( FEED ) for a green ammonia facility in Victoria , Texas . This facility has an initial anticipated production capacity of 300 metric tonnes of green ammonia per day and is expected to be the first to utilize solid oxide electrolyzer cell ( SOEC ) technology for hydrogen production .
This technology is expected to set new standards in energy efficiency by utilizing a process that is up to
30 % more energy efficient compared to conventional electrolyzers .
The plant ’ s design accommodates fluctuating renewable energy and will play a key role in stabilizing the local grid and paving the way for scalable and costeffective ammonia production .
The FEED study has a target completion date of Q1 2025 , with construction expected to begin later this year .
Joel Moser , CEO of First Ammonia , emphasized the significance of the collaboration : “ We are excited to be partnering with Worley , whose strong relationship with Topsoe , our technology licensor , and proven Gulf Coast expertise will help us decarbonize heavy industry , transport fuels , and power generation . Clean ammonia is essential in reducing emissions across hard-to-abate sectors , and Worley ’ s capabilities are vital for enabling decentralized , electric ammonia production .”
6 Hydrogen Tech World | Issue 20 | February 2025