Nel Hydrogen Solutions has received the first purchase orders for its H2Station® equipment and services under the contract that represents the company’s largest single order to date.
Under the California framework agreement, the Norway-based business will supply, construct and maintain multiple H2Station hydrogen (H2) refuelling stations throughout the US state for Royal Dutch Shell Plc (Shell) in a partnership with Toyota Motor Corp.
The start of equipment shipment will commence during the second half of 2017 with installation expected to occur during 2018.
The NOK 140m ($16.8m) deal, which was signed in February, represents the company’s “best possible start of entry into the Californian market,” according to CEO Jon André Løkke.
Shell will build seven fuelling stations through the project, which will support the target for 100 H2 refuelling sites by 2020 in California. The framework contract also allows Shell to purchase additional orders at a later stage.
According to H2stations.org, North America opened 25 new refuelling stations in 2016 – 20 of which were in the state of California. Today, there are 64 stations operating in the US.