Nel ASA's Electrolyzer Breakthrough Fails to Halt 15% Monthly Slide as Orders Collapse

Norwegian electrolyzer maker Nel ASA receives €135M EU Innovation Fund grant for gigawatt-scale plant, but shares fall amid 73% order plunge and lack of signed contracts.

The European Union is betting big on Nel ASA's next-generation hydrogen technology, with an Innovation Fund grant of up to 135 million euros earmarked for a scaled-up production facility. Yet the market continues to vote with its feet. The Norwegian electrolyzer maker's shares closed Friday at €0.24 — nearly 3% lower on the day and almost 8% down on the week — taking the monthly decline to over 15%.

Nel unveiled its new pressure-alkali platform in early May, promising turnkey systems for under $1,450 per kilowatt and a 60% reduction in capital expenditure versus existing solutions. The company plans to use the EU backing to expand production capacity at its Herøya site to one gigawatt annually. Management's message: green hydrogen costs are about to tumble. But investors are demanding evidence in the form of signed contracts.

The skepticism is grounded in sobering first-quarter numbers. Revenue slipped 5% to 148 million Norwegian kroner, while new orders collapsed to just 85 million kroner — a 73% plunge from the same period last year. The order backlog followed suit, shrinking 24% year-on-year. On the positive side, the operating result improved marginally to a loss of 100 million kroner, and Nel's cash position remains solid at 1.4 billion kroner. A modest $7 million order from the PEM division offered a rare bright spot but did little to shift the narrative.

Technically, the stock has lost short-term momentum, trading nearly 9% below its 50-day moving average of €0.26. The relative strength index of 38 signals building selling pressure. Still, the longer-term picture holds: the share is up 24% year-to-date and remains above both the 100-day moving average at €0.23 and the 200-day line, the latter serving as a critical floor. A decisive break below €0.23 could open the door to further downside.

The next major test arrives on July 15, when Nel publishes its half-year report. Until then, a quiet period bars investor discussions. To reverse the current drift, the company will need to demonstrate that its technological promise is translating into commercial traction — and that the order book is finally turning a corner.