Scotland's first clean technology manufacturing facility dedicated to electrolyser assembly and integration will be established in Aberdeen following a framework agreement between Hydrasun and Norwegian firm Nel (OSE: NEL).
Under the terms of the agreement with the Oslo-listed electrolyser manufacturer, Hydrasun will invest in new production lines for the assembly of Nel's MC Series, a containerised and scalable proton exchange membrane (PEM) electrolyser platform currently available in 1.25 MW and 2.5 MW building block configurations.
It will also manage the procurement, assembly and integration of the balance of plant systems that surround the PEM stack, benefitting from Nel's orderbook amid strong commercial development across Europe. The PEM stacks will be produced by Nel from its Wallingford facility in the US.
The Aberdeen facility is being developed with the support of £1.9 million from the Scottish Government’s Just Transition Fund (JTF), announced earlier this month.
In support of this, First Minister John Swinney visited Aberdeen on Wednesday to see first-hand how Hydrasun will use the funding to upgrade its facilities to support clean technology manufacturing, creating up to 12 new jobs and safeguarding a further 11.
John Swinney, Scotland’s First Minister, said:
“This funding will create and support hundreds of jobs in the North East of Scotland, helping to ensure they are at the forefront of the transition to clean energy.
“The workforce here are among the most skilled and experienced in the world – and the jobs and investment we are announcing today will help to ensure that remarkable energy expertise is preserved.
“While we will be continuing to use oil and gas for years to come, I want to ensure that workers here are also the foundation of our clean energy future.
“Scotland is an energy superpower, and the workers, businesses and communities of the North East will be vital in ensuring we capitalise on our remarkable renewable energy resources.”
As well as further cementing Hydrasun’s globally renowned reputation as a clean energy solutions provider, this facility also positions Aberdeen at the centre of a growing international supply chain for industrial equipment.
For Nel, which already deploys its technology to customers worldwide, this partnership secures an experienced integration partner in Europe, complementing its existing integration setup in the US and widening its delivery capabilities for the European market.
Beyond the factory floor, the initiative is expected to strengthen the wider Scottish and UK hydrogen supply chain, creating opportunities for local suppliers.
A global leader in integrated fluid transfer, power and control solutions, this announcement comes as Hydrasun marks its 50th year in business, having been founded in Aberdeen in 1976.
James Gaskell, Hydrasun CEO, said:
“This agreement marks a defining moment in Hydrasun's evolution. For 50 years we've supported the energy industry in the areas of fluid transfer, power and control solutions, and clean energy, this investment builds directly on that industrial capability.
“Establishing Scotland's first electrolyser assembly and integration facility is a proud milestone for the company and an important step forward for Aberdeen’s energy sector more broadly, ensuring the city has genuine clean energy manufacturing capability.
“It's a vote of confidence in our talented team, Hydrasun’s manufacturing capabilities, our supply chain, and our region's ability to compete on a global stage.”
Tushar Ghuwalewala, SVP PEM Operations at Nel, said:
“We are pleased to be working with Hydrasun to establish an experienced European integration partner for our standardized PEM electrolyser solutions, the MC Series. As demand for standardized, modular systems grows, this collaboration enhances our ability to serve key markets while creating greater flexibility and scalability across our production network.”
Maggie McGinlay, Chief Executive at ETZ Ltd, said:
“This investment is exactly the kind of tangible, industrial-scale project the North-east needs as it diversifies its energy base. It reinforces Aberdeen and North East Scotland's position as an internationally recognised hub of energy excellence and the most attractive location in Europe for investment in low carbon technologies, creating high-value jobs and strengthening the supply chain that will underpin the region's next chapter.”