OSLO, Jan 21 (Reuters) - Norway’s Nel, a maker of zero-emission hydrogen technology, will expand its operations in 2021 in order to make its products more cost competitive, leading to a significant loss for the year, it said on Thursday.
Hydrogen, currently mainly used in oil refining and to produce ammonia for fertilisers, is lauded as a potential future green fuel of choice as it is free from greenhouse gas emissions when it burns.
Nel’s goal is to enable customers to produce so-called green hydrogen at $1.5 per kilo in 2025, a cost level where it can outcompete fossil alternatives, down from between $2.5 and $4.5 per kilo in 2019, it said in a strategy update.
“Achieving this would allow green hydrogen to start to reach fossil parity, representing one of the most significant achievement for zero-emission solutions and a carbon neutral planet,” Chief Executive Jon Andre Loekke said.
Nel’s share price has risen by 200% in the last year, giving it a market value of 45 billion Norwegian crowns ($5.3 billion). ($1 = 8.4685 Norwegian crowns) (Reporting by Victoria Klesty, editing by Terje Solsvik)
Our Standards: The Thomson Reuters Trust Principles.