Multi-year electrolyser delays force supplier switch at 5MW US hydrogen project

A Washington state utility will use Nel PEM electrolysers to help balance hydroelectric generation in a 5MW green hydrogen project, following prolonged delays from its previous supplier Cummins.

Douglas Country Public Utility District (DCPUD) has placed a $7m purchase order with Nel’s US-based PEM subsidiary for the containerised system, which will be installed at its 840MW Wells Hydroelectric Project.

It marks a reset for a project that has faced multi-year delays.

The electrolyser will use hydropower to balance generation during periods of excess power output. This could reduce mechanical ramping at the project, lowering wear and maintenance costs at the facility.

No firm offtake agreement for the hydrogen has been disclosed. However, DCPUD operates a hydrogen refuelling station at its East Wenatchee campus.

The deal comes after major delays in developing the project. DCPUD began construction in 2021 and was due online in 2024. It originally placed a 5MW electrolyser order for around $9.5m with Hydrogenics, which was by US engine maker Cummins.

In January this year, DCPUD issued a notice of default and material breach to Cummins’ electrolyser division, alleging failure to complete the system. Other equipment had been installed at the site, but the electrolyser remained unfinished.

Cummins has since announced it will halt new after a sharp deterioration in market conditions.

Nel has said the project will now be online in the first half of 2027.

The switch to Nel underscores ongoing reshuffling among electrolyser suppliers, as project developers prioritise delivery certainty amid a more constrained hydrogen market.