SAMSUNG E&A invests in hydrogen technology leader Nel ASA, secures 9.1% stake

Nel ASA has entered into a strategic collaboration with SAMSUNG E&A, formerly known as Samsung Engineering, to advance global hydrogen plant development. Under the agreement, SAMSUNG E&A will integrate Nel ASA’s electrolyser technology into its hydrogen plant designs, providing end-to-end solutions for its clients. This move aligns with Nel ASA’s strategy of working with engineering, procurement, and construction (EPC) companies to scale up green hydrogen production.

As part of the partnership, SAMSUNG E&A has also acquired a 9.1% stake in Nel ASA through a private placement valued at NOK 353 million. The investment solidifies SAMSUNG E&A as Nel ASA’s largest shareholder and reflects its confidence in the hydrogen plant development sector.

What Does This Collaboration Mean for the Hydrogen Industry?

The agreement allows SAMSUNG E&A to offer comprehensive hydrogen plant designs that incorporate Nel ASA’s Alkaline and Proton Exchange Membrane (PEM) electrolysers. This development is expected to enhance the bankability of hydrogen projects, making it easier for industrial players to invest in large-scale hydrogen production.

Nel ASA CEO Håkon Volldal highlighted that the company’s focus remains on electrolyser stack and balance-of-stack technology, while partnerships with EPC firms like SAMSUNG E&A help expand its global market presence. The collaboration ensures that hydrogen plant development is backed by cutting-edge electrolyser solutions, improving efficiency and scalability.

SAMSUNG E&A CEO Hong Namkoong emphasized that green hydrogen is essential for decarbonizing industries such as transportation, refining, steel, and ammonia production. The company views hydrogen not just as a clean fuel but as a key ingredient for producing green ammonia, green methanol, sustainable aviation fuel (SAF), and e-fuels. By leveraging Nel ASA’s electrolyser technology, SAMSUNG E&A aims to provide cost-competitive hydrogen solutions with a strong financial foundation.

How Will the Private Placement Impact Nel ASA’s Market Position?

The private placement involves Nel ASA issuing 167,132,530 new shares to SAMSUNG E&A at NOK 2.1125 per share, based on a seven-day volume-weighted average price. The deal is subject to approval by Nel ASA’s Board of Directors, under an existing authorization granted at its April 2024 annual general meeting.

Following the transaction, SAMSUNG E&A will hold a 9.1% ownership stake in Nel ASA. To reinforce its commitment, the company has agreed to a two-year lock-up and standstill arrangement, subject to customary exceptions. The Nel ASA Board of Directors supports SAMSUNG E&A nominating a representative for the 2025 Annual General Meeting.

Nel ASA’s financial advisors for the private placement, Morgan Stanley & Co. International plc, facilitated the transaction, ensuring an optimal valuation for the company.

What Are the Long-Term Goals of This Strategic Partnership?

The partnership aims to accelerate hydrogen plant development by combining Nel ASA’s electrolyser technology with SAMSUNG E&A’s expertise in smart manufacturing, energy systems, and infrastructure projects. This collaboration is part of SAMSUNG E&A’s broader strategy to transition from a traditional EPC model to a technology-driven business approach.

By working with Nel ASA, SAMSUNG E&A intends to develop integrated Balance of Stack (BoS) systems for Alkaline electrolysers, enhancing their efficiency and reducing production costs. This innovation could lead to wider adoption of green hydrogen technologies, making hydrogen a more viable alternative to fossil fuels.

Additionally, SAMSUNG E&A is securing hydrogen and carbon-neutral technologies through strategic investments and partnerships, enabling the commercialization of new energy solutions. By integrating hydrogen plant development into its core operations, the company is positioning itself as a leader in the hydrogen economy.

How Will This Deal Influence the Global Hydrogen Market?

The Nel ASA-SAMSUNG E&A partnership reflects an increasing trend of collaboration between electrolyser manufacturers and EPC firms. As governments worldwide push for net-zero emissions and hydrogen adoption, demand for scalable, bankable hydrogen projects is rising.

SAMSUNG E&A’s investment in Nel ASA highlights the growing confidence in hydrogen as a long-term energy solution. With access to Nel ASA’s proven PEM and Alkaline electrolysers, SAMSUNG E&A is expected to play a critical role in expanding hydrogen plant development across multiple industries.

As more industrial players seek cost-effective, scalable hydrogen production methods, the partnership between Nel ASA and SAMSUNG E&A could set a new industry benchmark. With ongoing advancements in electrolyser efficiency and hydrogen plant integration, this collaboration has the potential to reshape the green hydrogen market for years to come.