Nel ASA, the Norwegian hydrogen technology company, appears to have reached a potential turning point following a series of substantial contract awards secured in November. These major deals, secured after a period of weaker order intake, could signal a new phase for the specialist.
Management Confidence and Market Response
A vote of confidence came from within the company’s own boardroom. Executive Board Member Hans Hide acquired 10,000 shares on November 6th at a price of 2.44 Norwegian kroner per share. This transaction increased his direct holdings to 40,000 shares, in addition to 600,000 options, signaling strong belief in the firm’s prospects from its leadership.
The market’s reaction to the contract news was characterized by significant volatility. After an initial surge that pushed the share price from approximately €0.18 to over €0.22, a mid-November correction saw a pullback of more than 6%, settling around €0.20. Market observers largely attribute this movement to technical profit-taking following a strong upward trend rather than any fundamental concerns, noting continued investor caution within the broader hydrogen sector.
A Landmark Contract and Strategic Partnerships
The most significant development was Nel’s announcement of the largest PEM electrolyser equipment contract in its corporate history, valued at over $50 million. This order, which represents the second-largest single contract ever for the company, was secured for the HyFuel and Kaupanes Hydrogen projects in Norway, both developed by Hydrogen Solutions AS.
Key strategic details of the agreement include:
* A scheduled system delivery timeline spanning from the second half of 2026 through 2027.
* A target for commercial operations to commence in early 2028.
* Manufacturing to be handled at Nel’s automated facility in Wallingford, USA.
* Anticipated positive impacts on the company’s financial performance and its service operations in Europe.
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Each of the two Norwegian projects will feature a 20 MW capacity utilizing Nel’s MC 500 containerized PEM electrolyser systems, resulting in a combined output of 40 MW.
Further solidifying its domestic position, Nel also entered a partnership with GreenH AS for hydrogen projects located in Kristiansund and Slagentangen. This agreement covers the supply of electrolyser equipment with a minimum capacity of 10 MW per site, amounting to a total of over 20 MW. Aimed at industrial and maritime clients, these projects form part of Norway’s decentralized hydrogen production network and have received substantial Enova funding grants totaling nearly 400 million NOK.
Analyst Sentiment Remains Cautious
Despite these recent contract successes, analyst estimates present a mixed picture. Revenue projections for 2026 have been revised downward to 1.0 billion NOK, reflecting a decrease of 3.2%. The consensus forecast anticipates a loss per share of 0.25 NOK.
Analysts collectively project an annual revenue decline of 2.6% through the end of 2026. This outlook stands in sharp contrast to the expected annual industry growth rate of 7.3% for the same period.
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