• License agreement between NEL ASA and Reliance Industries
• NEL ASA strengthens position in the global hydrogen market
• Share climbs to highest since December
License agreement between NEL ASA and Reliance Industries
The Norwegian hydrogen specialist NEL ASA has concluded a technology license agreement with the Indian group Reliance Industries Limited (RIL) through its wholly owned subsidiary NEL Hydrogen Electrolyser AS, as NEL announced last Tuesday. Reliance – India’s largest private company – will thus have the opportunity to produce NEL ASA’s alkaline electrolysers in India and use them for its own needs worldwide.
“The signing of this agreement is a major milestone in NEL’s history. Reliance is an impressive company with enormous ambitions as a global producer of renewable hydrogen, and I am proud that they have chosen NEL as their technology partner. In addition to helping Reliance achieve its global goals, this agreement will provide NEL with a revenue stream in a fast-growing market that NEL could not have reached on its own,” Håkon Volldal, President and CEO of NEL, is quoted as saying in the corresponding press release.
The strategic cooperation also focuses on improving performance and optimizing the cost of electrolysis technology, it says. “Under the agreement, NEL can purchase equipment for its own projects from Reliance. NEL will continue to serve the Indian market with technology platforms that are not covered by the agreement,” the press release says.
NEL shares benefit
Analysts are more optimistic about the deal, which will strengthen NEL’s position in the global hydrogen market, and see great potential for future growth.
Following the licensing agreement, NEL ASA shares rose by over 21 percent to 7.23 Norwegian kroner in Oslo last week. The last time they cost that much was in December 2023. The company, based in Oslo, is continuing to benefit from the deal in the new week – the stock is climbing again on Monday. The gains are temporarily 6.07 percent, which means a price of 7.372 Norwegian kroner.
Editorial staff finanzen.net
Image source: NEL ASA, Postmodern Studio / Shutterstock.com