Nel ASA: EU Cash and a Utility Debut Offer a Glimmer Amid the Gloom

Nel ASA secures first US utility deal, €135M EU grant, and launches a cost-halving electrolyser platform, but stock drops 17% amid order-book concerns.

The Norwegian electrolyser maker Nel ASA enters the week with a paradox: a freshly launched platform that slashes costs, a €135 million EU grant in the pipeline, and a stock that has shed 17% from its May peak. For investors, the question is whether the technology story can finally overcome the order-book drought.

A First-of-Its-Kind US Utility Deal

Nel has secured an order from the Douglas County Public Utility District in Washington state — the first time a public utility has bought its PEM electrolyser technology. The equipment will convert surplus hydropower into green hydrogen, helping the utility stabilise its grid and cut turbine maintenance costs. The stacks will be built at Nel’s Wallingford, Connecticut facility, with commissioning slated for the first half of 2027.

The deal marks a strategic push beyond traditional industrial customers. Chief Commercial Officer Todd Cartwright noted that buyers are increasingly seeking “solutions that are easier to install and easier to finance,” with interest growing in resilience-driven applications such as energy security and defence.

European Repeat Order and a €135 Million EU Boost

Alongside the US milestone, Nel booked a repeat order from Mesure Process, part of the Synqo Energies group, worth approximately $7 million. The containerised PEM electrolysers will feed hydrogen refuelling stations and industrial clients in Europe, also targeting a 2027 start-up.

The timing matters. The first quarter of 2026 was thin on new business, and these two contracts help demonstrate that Nel is broadening its customer base. More critically, the company has secured up to €135 million from the EU Innovation Fund, covering as much as 60% of eligible costs for its new alkaline platform. An initial tranche of €11 million is expected in the second quarter of 2026 — a tangible cash injection on the horizon.

The New Platform: Halving Industry Costs

After eight years of development, Nel has launched a fully modular, skid-based electrolyser operating at 15 bar pressure. That reduces the need for downstream compression and cuts energy consumption to under 50 kilowatt-hours per kilogram of hydrogen. For industrial buyers, the headline number is cost: Nel quotes turnkey costs of under $1,450 per kilowatt for a 25-megawatt system, less than half the industry average of $3,000 or more.

The platform has been successfully tested at full scale at the Herøya site in Norway. Initial production capacity is 1 gigawatt annually, with a roadmap to 4 GW. CEO Håkon Volldal is in active discussions with multiple potential customers for projects ranging from 50 to 150 MW in Europe and North America.

Financials: Losses Narrow, Cash Buffer Holds

Nel’s first-quarter 2026 revenues came in at 148 million Norwegian kroner, down 5% year-on-year. The EBITDA loss improved to minus 100 million kroner, a 15 million kroner gain from the prior year, while the net loss narrowed to 144 million kroner. The company has cut its workforce by 26% from its peak and holds liquidity of 1.4 billion kroner — enough, it says, to fund operations through the end of 2026.

Board chair Arvid Moss bought 100,000 shares at an average of 2.25 kroner in late April, a move market watchers interpret as a vote of confidence.

Analyst Skepticism and a Technical Oversold Signal

Despite the positive developments, the analyst community remains cautious. Berenberg’s James Carmichael cut his price target from 2.60 to 2.30 kroner, citing persistently weak order intake. No analyst currently recommends buying the stock; the consensus target sits at 2.14 kroner, with a majority rating it a sell.

The stock closed last week at €0.26, roughly 17% below the 52-week high of €0.32 reached in mid-May. Year-to-date, however, it still shows a gain of around 36%. The relative strength index stands at about 36 — a level technical analysts consider oversold, which could attract buyers when Oslo trading resumes.

The July 15 Test

Nel will release its half-year results on 15 July. By then, investors will be watching closely to see whether the new platform and EU funding can convert pipeline interest into binding orders. For a company that has seen its stock rally on technology promise while analysts warn of commercial reality, the next few weeks will be decisive.