Norwegian hydrogen specialist outfit Nel and compatriot oil & gas contractor Kvaerner have inked a strategic deal to develop a standardised 20MW hydrogen production module, while advancing a 100MW-plus design for ‘major scale’ renewables-powered plants.

The companies said they had “identified a range of projects on which to collaborate on moving forward” given the “anticipated demand” for green hydrogen technology as the global wind and solar build-out gathers pace.

“As we see projects growing in size and complexity, it’s important to have a strong partner such as Kvaerner, both for standardising large-scale green hydrogen production facilities, and also building them,” said Nel CEO André Løkke. “We look forward to working together with Kvaerner and expect to see results from this collaboration in the near future.”

Kvarner CEO Karl-Petter Løken stated: “This is a long-term commitment. Our goal is to further strengthen our competitiveness through leveraging each other’s competencies and experience and ensure the most efficient and predictable project deliveries for our customers.”

Last autumn, Kvaerner, which is transitioning from concentrating from a market strategy centred on the offshore oil & gas market, spotlighted renewables as one of two “focus growth areas”, with expectations clean-energy “ will gradually count for one third of [its] total revenues in the coming years”.

“We have developed a set of capabilities over the last five decades, comprising execution of complex project developments on an EPCI [engineering, procurement, commissioning and installation] basis,” said Løken. “Our capabilities are … directly transferable to the renewables segment.”

“This is an important collaboration as it opens up new areas of business for Kvaerner, and increase our competitive force in the renewables market.”

Hydrogen was identified alongside floating wind power and carbon capture and storage in a recent strategy report from Norwegian cross-sector body KonKraft as key to the country’s oil & gas industry as it targets cutting emissions to “near zero” by 2050, as part a wider industrial energy transition.