Is Nel ASA’s Hydrogen Strategy Gaining Critical Momentum?

Recent developments at Norwegian hydrogen specialist Nel ASA suggest the company may be reaching an inflection point. This week’s announcement of a strategic collaboration with GreenH AS for two new hydrogen production facilities follows closely on the heels of what the company described as the largest order in its history, potentially signaling a shift in fortunes for the equity.

Quarterly Challenges Offset by Major Contracts

Despite the recent positive developments, Nel faced significant headwinds in its most recent quarterly report released in late October:

• Contract Revenue Decline: Customer contract revenues fell by 17 percent
• Order Intake Contraction: New orders plummeted 64 percent year-over-year
• EBITDA Improvement: The loss narrowed to -37 million NOK, a substantial improvement from the previous year’s -90 million NOK

These lackluster figures highlight why the subsequent major contract wins are viewed as particularly timely. Market observers now speculate whether these substantial orders could drive a meaningful recovery in the company’s order book over the coming quarters as Nel works to convert its extensive sales pipeline into firm contracts.

Record-Breaking U.S. Order Fuels Market Optimism

The current wave of positive news began with a landmark announcement on November 5. Nel’s U.S. subsidiary secured a firm purchase order valued at $50 million from Kaupanes Hydrogen and HyFuel AS. This contract involves supplying 40 MW of containerized PEM electrolyzers, representing the largest PEM electrolyzer order in Nel’s corporate history.

Should investors sell immediately? Or is it worth buying Nel ASA?

• Delivery Schedule: Commencing second half of 2026 through 2027
• Operational Timeline: Projected to become operational by early 2028
• Market Response: Equity value surged by approximately 20 percent following the announcement

The initial investor enthusiasm, however, proved somewhat transient. In recent trading on Tradegate, the shares experienced a slight pullback, declining 0.4 percent.

GreenH Collaboration Adds to Project Pipeline

The newly unveiled partnership with GreenH covers development at two Norwegian sites—Kristiansund and Slagentangen. Each facility is planned with a minimum capacity of 10 MW, adding at least 20 MW of combined capacity to Nel’s project portfolio. Both initiatives form part of Norway’s national strategy to establish a comprehensive domestic hydrogen value chain and are receiving financial support from the state-owned enterprise Enova.

“We are pleased to support GreenH in developing regional hydrogen infrastructure across Norway,” stated CEO Håkon Volldal. Final contractual details for the projects remain under negotiation.

The convergence of these substantial contracts suggests Nel ASA may be positioning itself for a potential operational turnaround, though market participants continue to monitor whether this positive momentum can be sustained amid the challenging financial results reported just weeks earlier.