Nel ASA's Strategic Promise Undercut by CEO Exit and 73% Plunge in New Orders

Nel ASA's CEO steps down amid 20% stock rout, while its low-cost electrolyser challenges industry norms. Order intake plummets 73%, testing key support at EUR 0.21.

Nel ASA has a product that could reshape green hydrogen economics, yet the market is fixated on the corporate drama unfolding at the top. Chief executive Håkon Volldal is stepping down after three years at the helm, and the stock has shed roughly six percent over the past week to close at EUR 0.22 on Friday. That adds to a broader 20 percent rout over the last 30 days, leaving the share price deep in the red from its May high of EUR 0.37.

The board, chaired by Arvid Moss, has launched a search for Volldal’s successor. The transition will be orderly — Volldal stays on for another six months — and management insists the strategic course remains unchanged. But the timing is awkward. Nel is trying to commercialise a new pressurised alkaline electrolyser that took eight years to develop in Norway, targeting a cost of under USD 1,450 per kilowatt for a 25-megawatt plant. That is a direct challenge to an industry standard often exceeding USD 3,000 per kilowatt. Yet the excitement around that breakthrough has been completely overwhelmed by recent operating figures.

Nel’s order intake collapsed to just NOK 85 million in the first quarter, a staggering 73 percent drop year-on-year. The order backlog shrank by nearly a quarter. Revenue dipped slightly to NOK 148 million, and the operating loss narrowed to NOK 100 million. A cash cushion of around NOK 1.4 billion keeps the lights on, but the drying-up of new business is alarming investors who had hoped the electrolyser launch would spur demand.

Technically, the stock is testing a critical support level. The 200-day moving average at EUR 0.21 provided a floor in recent sessions, while the relative strength index has fallen to about 37, signalling an oversold condition. Below the 50-day line at EUR 0.27, the short-term trend is firmly bearish. Annualised volatility stands at a punishing 88 percent, meaning wild swings are the norm. If the EUR 0.21 support fails, a retest of the year’s low looks likely.

The broader sector is doing Nel no favours. The insolvency of battery maker Northvolt has dampened sentiment across European clean-tech stocks, even as the ACME Group secured a multi-billion-dollar green hydrogen investment package in Oman. EU hydrogen policy and growing energy demand from artificial intelligence provide a long-term tailwind, but near-term nerves dominate.

The next few months will be dominated by the CEO succession. Whoever takes the reins must bring proven experience in scaling electrolyser manufacturing — the skill needed to restore investor confidence. Until a candidate is named, Nel’s shares remain highly vulnerable. The product is ready, but the confidence gap is wide.