Samsung E&A Co. has acquired a 9.1% stake in Norwegian hydrogen technology company Nel ASA for 47.6 billion won ($32.8 million), marking the South Korean engineering firm’s strategic entry into the green hydrogen sector.
The company, formerly known as Samsung Engineering, will become Nel’s largest single shareholder through the purchase of 167.1 million newly issued shares, according to statements from both companies on Tuesday and Wednesday.
The deal includes an engineering, procurement and construction (EPC) agreement allowing Samsung E&A to design and offer complete hydrogen plants using Nel’s electrolyzer technology, which splits water into hydrogen and oxygen using electricity.
Nel, which launched the world’s first electrolyzer, specializes in solutions for producing green hydrogen from renewable energy sources, offering a significantly lower carbon footprint compared to traditional “grey hydrogen” derived from fossil fuels.
A Samsung E&A official said the investment would help the company “proactively secure technologies in the energy transition sectors” while creating opportunities to win high-value EPC contracts.
The Samsung Group unit plans to provide hydrogen plant technologies to project operators and potentially expand into installing and operating electrolyzers. The company also sees opportunities in related green fuel markets including ammonia, methanol and e-fuels.
