Australian developer Woodside Energy is planning its first hydrogen project in the U.S. and has selected Norwegian electrolyzer firm Nel to supply equipment for the H2OK site in Oklahoma.
Nel Hydrogen Electroyser signed a 600 million Krone ($56.5M U.S.) contract with Woodside Energy to supply the alkaline electrolyzer equipment for the proposed H2OK in Ardmore, Oklahoma.
Norwegian firm Nel Hydrogen Electrolyser, a subsidiary of Nel ASA, has signed a 600 million krone ($56.5M U.S.) contract with Australian firm Woodside Energy to supply alkaline electrolyzer equipment for the energy firm’s proposed hydrogen project, H2OK, situated in Ardmore, Oklahoma in the U.S. The alkaline electrolyzer equipment from Nel Hydrogen Electrolyser will support the Phase 1 of the proposed project
“We are extremely proud to be elected by Woodside Energy, a quality company with a strong track record of developing high-quality assets, for this exciting and meaningful project”, says Nel’s CEO Håkon Volldal.
Ardmore was chosen by Woodside for H2OK as it is suitable for hydrogen production with sufficient availability of water and energy. The firm will use the resources to produce liquid hydrogen.
Subject to approvals and customer demand, the H2OK concept involves construction of an initial 290- MW (MW) facility, which will use electrolysis to produce up to 90 metric tonnes per day (tpd) of liquid hydrogen for the heavy transport sector. The location offers the capacity for expansion up to 550 MW and 180 tpd, according to reports.
Ardmore is a historic oil community which is working to move into the energy transition. It is in southern Oklahoma located near Lake Texoma, one of the region’s largest reservoirs.
The electrolyzer stacks will be made at Nel’s Herøya factory in Norway. The contract is a firm purchase order for alkaline stacks, balance of stack (BoS) equipment. Engineering for the balance of plant (BoP) equipment will be provided by Woodside.
The order has pass-through mechanisms in place for steel and nickel price increases. The FID is expected to start in 2023 and production of the electrodes is expected throughout 2024.
The Woodside contract was signed a couple of months after a 200-MW purchase order that Nel received for another large-scale project in the US. Electrolyzers use electricity and water to separate the hydrogen atoms from the latter.
Earlier this year, Nel announced a deal to supply electroyzers for biotech firm Solar Foods in Finland.
“The electrolyzer market is developing favorably for Nel,” Nel’s CEO Volldal added.