Nel Hydrogen Solutions, a division of dedicated hydrogen (H2) solutions provider Nel ASA, has signed a framework contract representing the company’s largest single order for fuelling stations to date.

The deal also “represents the best possible start of entry into the Californian market” for the Norway-based business, according to its CEO Jon André Løkke.

San Francisco, United States

Under the framework contract, the Norway-based business will roll supply, construct and maintain multiple H2Station® H2 refuelling stations throughout California for Royal Dutch Shell Plc (Shell) in a partnership with Toyota Motor Corp.

Shell will build seven fuelling stations through the project, which will support the target for 100 H2 refuelling sites by 2020 in the state.

This latest development follows the California Energy Commission’s Notice of Proposed Awards for the Grant Funding Opportunity Light Duty Vehicle Hydrogen Refueling Infrastructure under a total sum of $33.4m. The organisation announced this additional funding on 17th February, 2017.

The contract between Nel and Shell has a potential value in excess of NOK 140m ($16.8m) depending on the number of H2Stations and scope of equipment and services that Shell choses to execute under the framework contract. The California Energy Commission is considering $16.4m in grants towards Nel’s stations. 

“This framework contract represents a major milestone for Nel, and opens significant opportunities in the fast-developing US H2 market,” Løkke added.