Nel ASA’s Samsung Guarantee Targets Hydrogen’s Financing Headache as Orders Keep Sliding

Nel's new CompassH2-A+ system, fully underwritten by Samsung E&A, bundles warranty risks to attract institutional capital. Despite a 73% plunge in Q1 orders and negative EBITDA, a strong cash position and 78% YTD stock rally support the hydrogen play.

The Norwegian electrolyser specialist is trying to solve one of green hydrogen’s most stubborn problems — making projects bankable enough to attract institutional capital. Its answer, unveiled with partner Samsung E&A at the World Hydrogen Summit in Rotterdam, is a fully guaranteed, containerised electrolyser system that removes the fragmentation of warranty risks for developers.

The CompassH2-A+ solution delivers 100 MW of capacity from pressurised alkaline technology in four 25 MW modules. Samsung E&A underwrites the entire integrated package, including stacks and balance-of-plant, meaning project financiers no longer have to juggle separate guarantees from multiple vendors. Nel claims the system’s footprint is roughly 50% smaller than conventional setups, a further cost advantage.

The alliance runs deep. Samsung E&A owns about 9.09% of Nel ASA, making it a strategic anchor shareholder. On the annual general meeting in April, Samsung representative Gyuyeon Kang saw his board mandate formally extended — a signal both companies intend a long-term commitment.

Yet the market backdrop remains challenging. Nel’s share price touched 0.34 euros on Monday, dipping 2.43% on the session, but still stands 78.14% higher year to date. The rally has pushed the stock near its 52-week high. Technical indicators reflect the mixed sentiment: Investing.com rated the daily view a “Strong Buy” on 1 June with a two-week RSI of 52.336 and a MACD buy signal at 0.080. However, the detail showed four buy signals, three neutral and three sells. The moving averages were evenly split at six buys and six sells — the short-term line at 3.82 flashed a sell, while the 3.55 line gave a buy.

Operationally, the first quarter tells a more sober story. Revenue from customer contracts came in at 148 million Norwegian kroner, down 5% year-on-year. Including other income, total revenue was 152 million kroner versus 175 million a year earlier. EBITDA settled at minus 100 million kroner — an improvement of 15 million kroner on the prior-year quarter, but still firmly in the red.

The real pressure point is order intake. New orders totalled just 85 million kroner in Q1, a 73% plunge from the same period last year. The order backlog shrank to 1.113 billion kroner, down 24% year-on-year and 16% sequentially. Nel’s cash position of 1.443 billion kroner provides a sizeable cushion, giving management the breathing room to fund its transformation without an immediate capital raise.

The US-listed Global X Hydrogen ETF still counts Nel among its top holdings. As of 29 May, the fund held 20.6 million Nel shares worth about $8.6 million, representing a 5.12% weighting. That suggests the stock remains a liquid vehicle for hydrogen-focused capital, even as the industry waits for orders to materialise.

Nel is meanwhile pushing ahead with its own capacity expansion. The final investment decision for a new pressurised electrolyser platform at Herøya, Norway, was taken in December. The first phase will cost roughly 300 million kroner, spread across 2026 and 2027, and targets up to one gigawatt of production capacity. The EU Innovation Fund has pledged up to 135 million euros in support. Commercial launch is set for the first half of 2026, with large-scale deliveries planned from 2027.

The next checkpoint for investors is the half-year report on 15 July. Until then, the stock remains a tug-of-war between technical momentum and fundamental hesitation — a test of whether improved product financing can eventually translate into bookings.