An exclusive licensing agreement between NEL ASA and Reliance Industries has recently catapulted the NEL ASA stock to new heights. The positive trend continues into the new week, with shares of the Norwegian hydrogen specialist gaining further.
The Norwegian Hydrogen Specialist NEL ASA, through its subsidiary NEL Hydrogen Electrolyser AS, has concluded a technology license agreement with the Indian conglomerate Reliance Industries Limited (RIL), as NEL announced last Tuesday. With this, Reliance, India's largest private company, gains the opportunity to manufacture NEL ASA's alkaline electrolyzers in India and use them globally for its own requirements.
"The signing of this agreement is a major milestone in the history of NEL. Reliance is an impressive company with enormous ambitions as a global manufacturer of renewable hydrogen, and I am proud that they have chosen NEL as their technology partner. In addition to supporting Reliance in achieving their global goals, NEL gains a source of revenue in a rapidly growing market that NEL could not have reached alone," Håkon Volldal, President and CEO of NEL, is quoted in the corresponding press release.
Within the framework of the strategic cooperation, the focus is also on performance improvements and cost optimizations of electrolysis technology. "According to the agreement, NEL can procure equipment for Reliance's own projects. NEL will continue to serve the Indian market with technology platforms that do not fall under the agreement," according to the press release.
Analysts see great potential for future growth in the deal and are optimistic that NEL's position in the global hydrogen market will be strengthened.
After the licensing agreement, NEL ASA's share rose by over 21 percent to 7.23 Norwegian Kroner at its peak in Oslo last week, a level last reached in December 2023. The company continues to benefit from the deal in the new week as well - the share climbed again on Monday. Ultimately, the gains amount to 5.88 percent, which represents a price of 7.38 Norwegian Kroner.
