Electrolyser maker Nel and oil & gas services company Aibel signed a framework agreement to work together on large-scale renewable hydrogen projects.

To kick off their alliance the two Norwegian groups will work jointly to deliver a 20MW PEM hydrogen production plant to Iberdrola to provide green hydrogen for industrial use in a link-up with fertiliser group Fertiberia that was first announced last summer by the Spanish utility.

"We are very excited to be announcing this collaboration with Aibel, a company with vast experience in delivering large scale, complex projects across industries,” Nel chief executive Jon André Løkke said.

“Their in-house construction expertise and experience in fabrication and modularisation will add significant value to Nel's global delivery and project execution abilities.”

Løkke added the partnership is a long-term commitment. Beyond the work for Iberdrola, Nel is phasing in Aibel on selected ongoing projects.

The agreement represents a strategic step in Aibel’s transformation towards renewable energy segments, the service provider’s CEO Mads Andersen said.

“Together with Nel we foresee many new business opportunities in a fast-growing, green energy industry.”

The Nel-Aibel link-up is the latest of a series of industrial partnerships being formed in the green hydrogen sector as it seeks to rapidly scale-up and drive down costs.

Nel earlier this year announced plans for a new 2GW factory — set to be the world’s largest — to help reduce the price of green hydrogen to $1.50 per kg by 2025, roughly the same cost as grey H2 derived from unabated fossil fuels.