Norwegian hydrogen specialist Nel ASA is presenting investors with a puzzling scenario. Despite announcing a series of substantial new orders, the company’s shares declined 1.75% today to close at 2.36 NOK. This performance has frustrated market participants who anticipated a stronger response to recent contract awards exceeding $50 million in total value.
Substantial Orders Fail to Impress the Market
The market received a significant positive signal on November 5th when Nel ASA secured the second-largest order in its corporate history. The HyFuel and Kaupanes hydrogen projects have commissioned two 20-megawatt PEM electrolyzer systems, representing a combined transaction above $50 million.
Key specifications of this considerable agreement include:
* Total PEM electrolyzer capacity of 40 MW
* Delivery scheduled from the second half of 2026 through 2027
* Commercial operations planned to commence in early 2028
* Manufacturing to be handled at the automated U.S. production facility in Wallingford
Merely five days following this announcement, on November 10th, the company confirmed another strategic victory. Nel was selected as the technology provider for the GreenH projects located in Kristiansund and Slagentangen, further validating its technological positioning within the industry.
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Insider Purchases Signal Executive Confidence
While the market sentiment appears tepid, actions from company leadership tell a different story. Hans Hide, the Chief Project Officer for Electrolysers, demonstrated his conviction by acquiring 10,000 shares on November 6th at approximately 2.438 NOK per share. This transaction increases his direct holdings to 40,000 shares, in addition to 600,000 options. Such a move is typically interpreted as a strong vote of confidence in the firm’s prospects from an individual with intimate knowledge of its operations.
Mixed Financial Picture Amid Sector-Wide Challenges
The company’s third-quarter 2025 results revealed a loss of 0.05 NOK per share. While this represents a negative outcome, it also indicates an improvement compared to the same period in the previous year.
The divergence between a growing project pipeline and a struggling share price can be largely attributed to broader sectoral pressures. The entire hydrogen market is currently grappling with widespread project delays and financing difficulties. Although the HyFuel and Kaupanes contracts convincingly demonstrate the competitiveness of Nel’s PEM technology for large-scale installations, these overarching industry uncertainties continue to weigh heavily on investor sentiment.
From a technical perspective, the stock has exhibited considerable volatility. The current pullback has erased a portion of the gains achieved during the recent period of contract announcements. This price action underscores a clear disconnect: while record contracts and insider buying point to fundamental business strength, persistent share price fluctuations reveal deep-seated investor apprehension regarding the extended timeline to profitability within the hydrogen sector.
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