Nel ASA Faces Order Cancellation as Key Hydrogen Project Stalls

Nel ASA NO0010081235

Investors in hydrogen technology firm Nel ASA are scrutinizing the stability of the company's project pipeline following a significant contract termination. Norwegian energy company Statkraft has halted a planned hydrogen initiative, leading to the cancellation of a previously agreed purchase order with Nel's subsidiary, Nel Hydrogen Electrolyser AS.

The cancellation directly affects Nel's order backlog, reducing it by approximately 120 million Norwegian Kroner (NOK), equivalent to about 10.2 million euros. The contract, originally signed on 6 January 2023, was for a 40-megawatt alkaline electrolyser.

This development did not emerge without warning. In its first-quarter 2025 financial report, Nel had already flagged this specific contract, indicating that a delay or outright cancellation was a distinct possibility.

Market Viability Cited as Primary Reason

Statkraft attributed its decision to stop the project to fundamental commercial challenges. Despite considerable efforts, the company stated it could not establish a viable commercial model for the initiative under prevailing market conditions. Bjørn Holsen, Statkraft's Senior Vice President for Hydrogen, explained that plans required adjustment, resulting in the order with Nel being withdrawn.

This situation highlights a recurring issue within the emerging hydrogen sector: projects frequently stumble not on technical or scheduling hurdles, but on the fundamental question of economic sustainability and a robust business case.

Forthcoming Financial Disclosures to Provide Clarity

Market participants looking for updated metrics on order intake and financial health will focus on Nel's upcoming reporting schedule. The company is set to release its full-year and fourth-quarter 2025 results on 26 February. This report is expected to offer crucial insights into the current order intake and the firm's liquidity position.

Further key dates include the Annual General Meeting scheduled for 10 April, followed by the publication of first-quarter 2026 figures on 22 April. These events will serve as critical indicators for assessing Nel's operational trajectory and strategic positioning in the wake of this contract loss.