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Green Hydrogen Production Accelerated by Hystar and McDermott’s Modular 20 MW PEM Electrolyser

May 26, 2026 By Allen Brown High trust 10.0/10

Hystar and McDermott unveil Orion, a 20 MW modular PEM electrolyser cluster aimed at cutting costs and speeding up green hydrogen production with local manufacturing.

Green Hydrogen Production Accelerated by Hystar and McDermott’s Modular 20 MW PEM Electrolyser
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Hystar AS and McDermott have teamed up to roll out something truly innovative: meet the Orion, a sleek 20 MW PEM electrolyser cluster designed to ramp up green hydrogen production. This collaboration taps into Norway's growing reputation as a leader in low-carbon tech. Together, they're on a mission to make engineering more efficient, cut down costs, and speed up the development of hydrogen infrastructure on a global scale.

Building on a solid agreement to co-create a turnkey design for a 100 MW plant, the duo plans to deliver a fully engineered package that seamlessly combines Orion clusters with essential systems, safety measures, and commissioning support. This means that developers won’t have to start from square one each time. Instead, they'll have a ready-made design they can rely on!


All About Orion

The concept behind Orion is refreshingly simple yet incredibly powerful: it combines high-efficiency stacks into a modular unit that can run solo or team up with other clusters. Each unit operates on renewable electricity, splitting water into hydrogen and oxygen through a proton exchange membrane. What’s really cool is that Hystar has developed proprietary membranes that are thinner than the standard ones. This innovation could potentially reduce energy consumption by up to 10% for each kilogram of hydrogen produced.

With pre-assembled units, logistics are a breeze, and on-site installation can happen in a matter of days instead of weeks. Operators can connect multiple Orion clusters to achieve capacities ranging from 20 MW all the way up to 100 MW and beyond, enjoying the perks of flexible turndown, built-in redundancy, and quicker commissioning times.


Lowering Costs Through Standardization

Standardization is a game-changer when it comes to cutting costs. By duplicating the same 20 MW clusters, suppliers can mass-produce components more effectively and streamline their supply chains. Plus, these repeatable designs help minimize engineering efforts and simplify regulatory approvals, making it easier for project developers to secure funding under hydrogen auctions and Contracts-for-Difference schemes.

Given the rising demand for hydrogen, Hystar is gearing up to launch a 4 GW automated factory in Høvik, backed by Series B and C investments from big names like AP Ventures and Mitsubishi Corporation. This volume-focused strategy is expected to drive equipment prices down even further, making green hydrogen production even more accessible!


Addressing Real-World Challenges

This partnership is set on tackling real-world issues in sectors that desperately need low-carbon solutions, such as fertilizer production, steel manufacturing, and heavy transport. By providing standardized plant blocks, project developers can mitigate technical risks and enhance the financial appeal of their projects. With pre-engineered layouts and reliable performance data, getting the necessary permits becomes a walk in the park, which boosts investor confidence in potential returns.

The combination of high efficiency and a modular design ensures that less electricity is needed per kilogram of hydrogen, plus there's minimal downtime during everyday operations. If one cluster needs a little TLC, the others can keep chugging away, maintaining production levels and preserving revenue. This setup also meets the strict uptime targets that industrial users demand.


Broad Applications Across Industries

Orion clusters can serve as foundational elements for green ammonia hubs, delivering clean hydrogen to ammonia synthesis plants. In the steel industry, they can power hydrogen for direct reduced iron processes, reducing reliance on fossil fuels. Meanwhile, operators of heavy transport—from shipping companies to trucking fleets—can take advantage of onsite hydrogen for fuel cell vehicles, all while linking into standardized refueling infrastructure.

Beyond industrial applications, data centers and remote microgrids can swap out diesel generators for electrolyser-fuel cell systems. The quick response times and adaptable output from Orion setups help buffer the fluctuations in renewable energy sources, ensuring a stable power supply whether in off-grid situations or as backup.


Made in Norway, Built for the Future

Orion is proudly made in Norway, with an eye on the future and a plan for global markets. The Høvik area, close to Oslo, is home to a cluster of maritime, energy, and tech firms that lend their expertise in hydropower and engineering. Manufacturing right here not only cuts down on logistics costs but also speeds up delivery times.

As hydrogen targets ramp up at both the national and EU levels, having a homegrown solution boosts energy security, strengthens industrial competitiveness, and enhances the potential for exports. Standardized modules like Orion could play a vital role in establishing hydrogen corridors that connect production sites to pipelines and end users across Europe.


Harnessing Local Talent and Creating Jobs

By drawing from Norway’s hydropower expertise and the innovative spirit of Høvik, this partnership is poised to create a wealth of skilled manufacturing and engineering jobs. The planned electrolyser factory alone could employ hundreds, with roles ranging from production line supervision to quality assurance.

McDermott’s global EPCI capabilities are also set to spur local growth, as they bring Orion clusters into full turnkey plants. This will benefit contractors, maintenance teams, and logistics providers, widening the economic impact well beyond the factory floor.


Supporting Policy Goals

More and more policymakers are looking towards green hydrogen as a way to decarbonize hard-to-abate sectors. Flexible solutions like Orion enable projects to align precisely with awarded volumes, rolling out capacity in phases to reduce upfront risks and capital lock-up. And with repeatable safety and performance data, the approval processes speed up, helping regions hit their emission targets more quickly.

Consistent efficiency and reliable output also resonate well with financiers. Project lenders can depend on standardized performance metrics to model cash flows, which helps them secure lower-cost capital and further bring down the cost of hydrogen production.


A Vision for the Future

Looking to the future, the collaboration between Hystar and McDermott marks a pivotal moment in hydrogen project development. Thanks to modular plant designs and high-efficiency stacks, developers can turn their attention to securing renewable power sources and offtake agreements, rather than getting bogged down in custom engineering. This shift promises quicker project delivery, more competitive pricing, and installations that are easier to finance and adjust for future growth.

With improved electrolyser efficiency, fewer renewable generation assets are required for the same hydrogen yield, which eases the challenges around grid integration and land use. As more regions embrace ambitious hydrogen roadmaps, scalable solutions like Orion will be crucial in laying the groundwork for the first wave of industrial hubs.


Celebrating Innovation

As the hydrogen landscape evolves, modular hydrogen plants are set to become the backbone of low-carbon energy infrastructure. Hystar and McDermott have demonstrated that merging cutting-edge PEM technology with seasoned engineering expertise can effectively tackle real-world challenges and bring about tangible benefits. From lowering costs to boosting environmental sustainability, Orion sets a blueprint for the future of clean hydrogen production.

With Norway leading the charge and plans for scaling up global production, this partnership exemplifies how local innovation and robust industry collaboration can fuel a sustainable energy transition—making lives better every step of the way!


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