Norwegian developer Hydrogen Solutions (HYDS) has taken a final investment decision on two 20MW green hydrogen projects in Norway.

The Hyfuel and Kaupanes projects, in the southern coastal towns of Florø and Egersund, respectively, will now move to the construction phase, using containerized PEM electrolysers supplied by fellow Norwegian company Nel.

Nel says the total contract value of more than $50m is the second-largest firm purchase order it has ever received, and its largest ever order for PEM technology.

Delivery of the electrolysers — which will be manufactured at Nel’s Connecticut factory in the US — is due to begin in the second half of 2026 and continue “throughout 2027”, with a view to starting commercial operation in early 2028.

The projects will “support the maritime sector, transportation, construction and industrial users across Norway and the Nordic region”, says HYDS.

“This represents an important step in advancing the green hydrogen market in Norway and the Nordics” says HYDS CEO Frode Kirkedam.

Kaupanes already has a 1MW electrolyser up and running, and the 20MW project is an expansion of this existing facility.
The project has been awarded NKr206m ($20.2m) of support from national government agency Enova, with a further NKr180m allocated to Hyfuel.

Nel CEO Håkon Volldal adds: “This strategically important order… marks an important milestone for the company coming out of a period of lower order intake.

“Nel has already delivered several systems globally based on its proven and reliable PEM platform. With today’s order we confirm the platform’s competitiveness also for larger installations and it will serve as a key reference for future projects.”

Hyfuel is co-owned by HYDS, local power company Sogn og Fjordane Energi, and oil & gas supplier Fjord Base; while Kaupanes is co-owned by HYDS, power supplier Dalane Energi and local municipality agency and harbour operator Eigersund Næring og Havn KF.