Woodside Energy has awarded Nel Hydrogen Electrolyser AS a contract for the alkaline electrolyser equipment for H2OK, its proposed hydrogen project in Ardmore, Oklahoma.
The contract has a total value of about NOK 600 million. It was signed only a couple of months after Nel received its record size 200 MW purchase order for another large-scale project in the US.
The electrolyser stacks will be manufactured at Nel’s factory in Herøya, the world’s only fully automated electrolyser facility. When completed, the electrolyser plant will have a nameplate capacity of about 64,000 kg per day of hydrogen. Woodside is aiming to take a final investment decision in 2023.
The signing of the alkaline electrolyser contract is progress toward Woodside realising its ambition to build a New Energy business in the United States. With the passage of the Inflation Reduction Act, the drive to accelerate the energy transition in the US is underway, and Woodside aims to be part of that.
H2OK is located close to national highways and the supply chain infrastructure of major transport companies. That positions H2OK to supply customers with the reliable, affordable, lower-carbon energy they seek.
The alkaline electrolyser equipment would support phase 1 of the H2OK project, designed to produce 90 tonnes/day.
The proposed project site in Ardmore is in an area well-suited for hydrogen production with good water and renewable energy availability. The company will utilise these resources in Oklahoma to produce liquid hydrogen for hydrogen fuel cell-powered commercial and heavy transport vehicles.
Woodside is looking to expand its New Energy footprint in the US and is also working on two proposed hydrogen projects in Australia: H2Perth and H2TAS.
Shaun Gregory, EVP at Woodside, said, “The contract award was an important step forward for H2OK, which would be Woodside’s first hydrogen project globally.”
Håkon Volldal, the CO of Nel, said, “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.”