Norwegian hydrogen technology firm Nel ASA has secured a new purchase order from its long-term partner H2 Energy, providing a glimmer of optimism after recent financial challenges. The contract, valued at an estimated $3-4 million, is for a containerized PEM electrolyzer solution and represents the third major system acquisition by the Swiss hydrogen specialist from Nel.
Strategic Partnership Bears Fruit
The collaboration between Nel ASA and H2 Energy dates back to 2016 and continues to strengthen with this latest MC500 order—a 2.5 MW PEM electrolyzer system. This ongoing relationship demonstrates H2 Energy’s sustained confidence in Nel’s technological capabilities. The partnership history includes previous acquisitions of a C30 unit and an MC400 system, with the latter having accumulated over 30,000 operational hours. The MC500 platform itself has already demonstrated reliability with more than 12,000 hours of runtime.
Strengthening Swiss Hydrogen Infrastructure
Installation of the new electrolyzer is scheduled for the VfA waste management facility in Buchs, where it will contribute to Switzerland’s expanding hydrogen ecosystem. The country has established substantial hydrogen infrastructure, including 18 refueling stations and a fleet of heavy-duty fuel cell trucks that have collectively covered more than 14 million kilometers.
Key Project Specifications:
• 2.5 MW capacity from containerized PEM electrolyzers
• Integration with local power generation facilities
• Hydrogen production for municipal truck fleets and industrial applications
• Support for green hydrogen ecosystem development
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Financial Context and Market Position
Nel’s recent financial performance has faced significant headwinds. Second-quarter 2025 results revealed a 48% revenue decline to 174 million NOK, while EBITDA fell to negative 86 million NOK. The company has implemented workforce reductions, letting go of 69 employees since the third quarter of 2024.
Despite these challenges, Nel maintains a solid financial foundation with 1.9 billion NOK in cash reserves and an order backlog worth 1.25 billion NOK. Additionally, the company stands to benefit from the US 45V hydrogen production tax credit, which provides up to $3 per kilogram of hydrogen—a significant tailwind for Nel’s North American market operations.
Growth Through Strategic Alliances
Rather than focusing exclusively on equipment sales, Nel is pursuing growth through integrated solutions and strategic partnerships. Collaborations with industry leaders Samsung E&A and Saipem aim to capture market share through comprehensive offerings that position Nel’s electrolyzer technology as a valuable component within larger systems.
The company continues to advance its technology pipeline, with active development underway on next-generation alkaline and PEM electrolyzer systems. These efforts target a crucial benchmark: reducing hydrogen production costs to $3-4 per kilogram, which would represent a significant milestone for broader market adoption.
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