Australia’s Woodside Energy has tapped Norwegian firm Nel Hydrogen to provide alkaline electrolyser equipment for its H2OK hydrogen project in Ardmore, Oklahoma.
The contract is worth Nkr 600 million ($57.02 million) for Woodsides’ first hydrogen project in the US. It will support phase one of the project, which is designed to produce 60 tonnes per day of hydrogen.
Woodside executive vice president of new energy Shaun Gregory said: “The signing of the alkaline electrolyser contract is progress toward Woodside realising its ambition to build a New Energy business in the US.
“With the passage of the Inflation Reduction Act, the drive to accelerate the energy transition in the US is under way, and Woodside aims to be part of that.
“H2OK is strategically located close to national highways and the supply chain infrastructure of major transport companies. That positions H2OK to supply customers with the reliable, affordable and lower-carbon energy they are seeking,” Gregory said.
The companies will produce liquid hydrogen to fuel hydrogen fuel cell-powered vehicles, with a final investment decision expected in 2023. Front-end engineering and design is expected to be completed by the end of this year, with KBR previously awarded a contract for engineering services.
Nel also recently received a 200-megawatt purchase order for another large US project.
“The electrolyser market is developing favourably for Nel. We are now securing quality contracts with favourable terms and a manageable risk profile,” Nel chief executive Hakon Volldal said.
The electrolyser stacks will be made in Nel’s factory at Heroya, Norway, the world’s only fully automated electrolyser plant.
“It is extremely exciting to work with the professional team at Woodside to realise a project such as this. The Ardmore project will become an excellent showcase for Nel’s electrolyser technology as it aims to enable broader utilisation for renewable energy into transportation and industrial sectors,” Nel US regional sales manager Tom Skoczylas said.
(Woodside's original media release stated incorrectly the capacity figure for the alkaline electrolyser equipment would support 90 tpd instead of 60 tpd.)