Nel Hydrogen Solutions, a division of Nel ASA, has entered the hydrogen (H2) market in Iceland after establishing a joint venture with major Icelandic oil retail company Skeljunger HF.

Dubbed Icelandic Hydrogen, the collaboration aims to form a network of H2 fuelling stations and renewable H2 production across the European country. Skeljunger and Nel own 90% and 10%, respectively.

The joint venture’s first project will see the Norway-based business deliver three H2Station® H2 fuelling stations and a NEL C-series electrolyser in a deal worth €4m ($4.2m).

Initially, Icelandic Hydrogen will establish these three H2 fuelling stations which will be connected to central renewable H2 electrolysis production. It is understood that this is the first step in the continuous, long-term expansion of the network along with fuel cell electric vehicle (FCEV) deployments to meet growing H2 fuel demand.

In the joint venture, Nel will deliver the H2 production and fuelling equipment whilst Skeljunger will provide the locations for H2 fuelling and retail operational expertise.

“We are delighted to open us this new market for H2-powered vehicles”

Jon André Løkke, CEO, Nel ASA

The first lot of equipment will be shipped towards the end of 2017 and is anticipated to be installed during 2018.

Once completed, almost 80% of the Icelandic population will be within reach of one of the three H2 fuelling stations – the highest share for any country in the world.

CEO Jon André Løkke stated, “We are delighted to open us this new market for H2-powered vehicles together with a leading player like Skeljunger. With this collaboration, we continue our successful and proven joint venture approach already applied in markets like Denmark and Norway.”

Valgeir M. Baldursson, CEO of Skeljunger, added, “With 100% renewable and domestic based electricity supply, we aim to make hydrogen a lower cost option for the end consumer compared to gasoline – this will also help to reduce national fuel imports. This contract is a part of a plan to introduce multi-fuel ecofriendly stations in Iceland.”