SAMSUNG E&A will acquire a 10% stake in newly issued Nel shares through a direct placement, resulting in 9.1% post-transaction ownership. Credit: Mareks Perkons/Shutterstock.

Hydrogen electrolyser technology company Nel has entered an engineering, procurement and construction (EPC) collaboration agreement with SAMSUNG E&A, allowing the latter to offer complete hydrogen plants using Nel’s electrolysers.

The partnership enhances Nel’s global delivery capabilities and competitiveness in the hydrogen sector – a significant step in expanding its reach and influence.

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SAMSUNG E&A, formerly Samsung Engineering, is a South Korea-based total solutions provider in the global energy industry.

The collaboration will enable SAMSUNG E&A to develop and offer complete design packages for hydrogen plants based on Nel’s alkaline and proton exchange membrane (PEM) electrolysers.

Nel president and CEO Håkon Volldal stated: “Our strategy is to focus on electrolyser stack and balance of stack technology. Therefore, we need to work with EPC companies who can provide balance-of-plant solutions and increase our global market reach.

“It is an honour that a highly reputable and solid company like SAMSUNG E&A has decided to partner with Nel because of our technology and manufacturing leadership.”

The two companies will also work on a larger consolidated balance of stack (BoS) system for Nel’s Alkaline electrolysers, further enhancing their technological offerings.

SAMSUNG E&A CEO Hong Namkoong stated: “SAMSUNG E&A will provide integrated electrolyser solutions with competitive value and bankability to green hydrogen project owners with Nel.

“Green hydrogen is a core technology in clean tech with carbon-neutral technologies and has a high value not only as itself but also as a basic ingredient for green ammonia, green methanol, SAF [sustainable aviation fuel] and e-fuel.”

In a separate transaction, SAMSUNG E&A will acquire a 10% stake in newly issued Nel shares through direct placement, resulting in a 9.1% post-transaction ownership.

This transaction will make SAMSUNG E&A the largest single shareholder in Nel, strengthening the partnership and its influence within the company.

Nel will issue 167,132,530 shares to SAMSUNG E&A at Nkr2.1125 ($0.1975) per share – a total of Nkr353m.

The transaction is subject to approval by the board of directors, following an authorisation to increase share capital granted by Nel’s annual general meeting on 23 April 2024.

SAMSUNG E&A has agreed to a two-year lock-up and standstill arrangement with customary exceptions.

Morgan Stanley & Co International acted as financial advisor to Nel for the private placement.