Nel ASA Hits New Peak as EU Funding Wave Meets Insider Confidence

Nel ASA shares surge to EUR 0.28 on EU hydrogen funding and chairman's first-ever share purchase, despite Q1 order slump and mixed financials.

The stars are aligning for Nel ASA, with the Norwegian electrolyser manufacturer riding a powerful combination of policy tailwinds and internal conviction to fresh highs. The stock touched EUR 0.28 on Thursday — a 52-week record — as a EUR 600 million EU grant programme for cross-border energy infrastructure sent the entire hydrogen sector into overdrive.

Trading volumes on Xetra swelled to five times the daily average as investors piled in. The rally has now pushed year-to-date gains to roughly 43%, a remarkable run for a company still navigating operational headwinds.

Chairman puts money where his mouth is

Just days before the EU announcement, Nel’s chairman Arvid Moss made his first ever reported share purchase, acquiring 100,000 shares at an average price of NOK 2.25. The transaction, disclosed under both EU Market Abuse Regulation and Norwegian securities law, signals board-level confidence at a time when the company’s financials remain under pressure.

Nel’s market capitalisation currently stands at around EUR 372 million. The insider buy adds a layer of credibility to the stock’s recent ascent, suggesting those closest to the business see value that short-term metrics don’t fully capture.

Mixed signals from the first quarter

The Q1 numbers paint a nuanced picture. Net losses narrowed to NOK 144 million from NOK 179 million a year earlier, while EBITDA improved by NOK 15 million to minus NOK 100 million — helped by a more than 20% reduction in personnel costs.

But the order intake tells a different story. New orders slumped 73% to just NOK 85 million, dragging the total order backlog down 24% to approximately NOK 1.1 billion. Revenue from customer contracts came in at NOK 148 million, 5% below the prior-year figure.

CEO Håkon Volldal acknowledged the “quite quiet” quarter for order intake, but pointed to growing interest in decentralised energy production and defence-related applications. “Hydrogen is becoming a strategic tool for governments, not just a climate technology,” he noted.

Nel retains a liquidity buffer of roughly NOK 1.4 billion — enough, management says, to fund operations through the full 2026 calendar year.

May 6: The platform that could change everything

All eyes are now on May 6, when Nel will unveil a new pressurised alkaline electrolyser platform at its Herøya facility. Volldal has described the technology as a “quantum leap,” promising to cut capital expenditure by 40-60% and operating costs by 10-20%.

The EU’s Innovation Fund is backing the project with up to EUR 135 million, and the company expects series deliveries to begin in 2027. Crucially, Nel is showing a physical, working installation — not a slide deck. The first 500 megawatts of production capacity should be operational by the end of 2026.

A potential overhang remains: two existing 500 MW atmospheric electrolyser production lines at Herøya are currently idle. The launch of the new platform could trigger impairment charges on these legacy assets.

Analyst caution persists

Despite the recent share price surge, the sell-side remains unconvinced. None of the 12 analysts covering Nel recommend buying the stock; the majority advise selling. The average price target sits at NOK 2.13, well below the current trading level.

The next major catalyst after the platform launch comes on July 15, when Nel reports second-quarter results. Until then, the stock’s valuation hinges largely on the political and regulatory support for Europe’s hydrogen ambitions — and on whether the May 6 event can convert technical promise into commercial reality.

Nel’s PEM division has already secured a USD 7 million order since the quarter closed. Whether the new platform triggers a broader contract pipeline will be the key question when the half-year numbers land.