Nel ASA’s Chairman Puts His Own Money on the Line as EU Funding Backs a New Electrolyser Era

The hydrogen sector is notorious for its boom-and-bust cycles, but Nel ASA is attempting to chart a more deliberate course. With a chairman buying shares for the first time, a €135 million EU grant in the pipeline, and a new technology platform set to launch next week, the Norwegian electrolyser maker is sending multiple signals to a sceptical market.

Insider Confidence Meets a Mixed Quarter

Arvid Moss, Nel’s board chair, acquired 100,000 shares at an average price of 2.2547 Norwegian kroner, marking his first publicly disclosed holding in the company. The transaction, conducted under EU market abuse regulations, came hot on the heels of the first-quarter earnings release — a deliberate show of faith from the top.

Those numbers tell a nuanced story. Revenue from customer contracts slipped 5% year-on-year to 148 million kroner in the first quarter of 2026. The alkaline electrolyser segment bucked the trend with a 6% gain, and EBITDA improved by 35 million kroner compared with the same period last year. The order backlog, however, dropped 24% to roughly 1.1 billion kroner — a figure that underscores the competitive pressure Nel faces.

The company’s cash position offers some breathing room. With 1.4 billion kroner in liquid assets, Nel is funded through the end of 2026. That financial cushion becomes critical as it prepares to unveil its most important product in years.

6 May: The Date That Matters

All eyes are on 6 May, when Nel will formally launch its new pressurised alkaline electrolyser platform. The technology is designed to slash capital costs for green hydrogen projects — a make-or-break proposition for an industry that has struggled to compete with grey hydrogen on price. Commercial mass production is slated for 2027.

The European Union has thrown its weight behind the project, committing up to €135 million in support. Of that total, €11 million is expected to flow in the coming months. The grant provides validation for Nel’s technology roadmap at a time when the sector is shifting from promises to execution — a shift underscored by Cummins’ February 2026 decision to exit the commercial electrolyser business.

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

Nel’s internal governance is also evolving. The company has replaced its stock option programme with performance share units tied to operational targets. CEO Håkon Volldal voluntarily swapped his 1.5 million options for roughly 3.4 million of the new units, a move designed to align management incentives with shareholder interests. The new structure caps the CEO’s award at 50% of base salary.

Analyst Caution Persists

The market’s reception has been cautiously optimistic. Nel’s shares closed at €0.22 on Friday, up 6.55% on the day and extending a double-digit gain for the month. The stock has broken above its 200-day moving average, a technical signal that has drawn attention.

Yet the analyst community remains unconvinced. Berenberg cut its price target to 2.30 kroner in March. The average 12-month target stands at 2.14 kroner, with not a single buy rating among the seven analysts covering the stock — all seven recommend selling. That disconnect between insider buying and external scepticism captures the tension Nel faces: a promising technology pipeline versus a contracting order book.

The Broader Hydrogen Landscape

Nel’s story is playing out against a fragmented sector backdrop. While ITM Power has surged on the back of a defence contract and £86.5 million in public funding, and EcoGraf has ridden a Mitsubishi partnership to a 400% ASX gain, Nel occupies a middle ground. It has revenue, institutional backing and EU support — but it lacks the explosive catalysts that have propelled some peers.

The company’s next major reporting date is 15 July, when second-quarter numbers are due. Between now and then, the success of the 6 May platform launch will determine whether Nel can convert technological promise into the orders that analysts are demanding. For a chairman who has just put his own capital on the line, the stakes could hardly be higher.