Nel ASA Outsources European Electrolyser Assembly to Hydrasun While Still Hunting for a CEO

Nel ASA hands European assembly of its modular PEM electrolysers to Scotland's Hydrasun, building capacity in Aberdeen as the CEO post stays vacant.

Nel ASA has handed the European assembly and integration of its modular PEM electrolysers to Scotland's Hydrasun, a move that shifts part of the value chain closer to continental customers even as the Norwegian hydrogen specialist continues to operate without a permanent chief executive.

Under the framework agreement, Hydrasun will build dedicated production capacity in Aberdeen and take charge of procurement, integration and manufacturing of the balance-of-plant systems that surround the electrolyser stacks. Nel keeps stack production at its own facility in Wallingford, Connecticut. The stated aim is to deliver fully integrated, containerised systems tailored to the European market — adding a European supply option rather than replacing the existing US integration base.

Tushar Ghuwalewala, Nel's Senior Vice President for PEM operations, told Mining Weekly that teaming up with Hydrasun sharpens the company's ability to serve key markets and lifts flexibility and scalability across its manufacturing network. For a business that has historically shipped nearly every component from overseas, the arrangement marks a deliberate step toward localising part of the production process.

A deal landing in a difficult stretch

The announcement arrives with Nel still under pressure on several fronts. Roughly twelve weeks ago the company disclosed that its previous chief executive was leaving for Elopak, and the succession question has remained open ever since. Mid-July brought second-quarter and first-half 2026 results that laid bare the continued strain on earnings.

The stock has felt the weight. Shares closed Thursday at EUR 0.1944, down 1.1% on the day, and sit about 47% below the 52-week high of EUR 0.3655 touched in May. At EUR 0.1930 the price is 9.4% under its 200-day moving average of EUR 0.2130, while the 50-day average of EUR 0.1980 hovers just above the current level. Over the past 30 days the shares have shed 6.8%.

The second-quarter figures explain why sentiment has soured. Revenue from customer contracts came in at NOK 153 million, a 12% decline from the same period a year earlier, and EBITDA stood at minus NOK 155 million. The gap between winning work and turning it into profitable output remains the company's central challenge, and any new partnership will be judged on whether it narrows that gap or merely widens the sales footprint.

What the bulls and bears are watching

Optimists see a path where the Hydrasun tie-up converts into firm orders across the UK and Northern Europe, entrenching Nel's position in large-scale hydrogen infrastructure. Closer cooperation with an established integrator tends to cut delivery times and fixed costs per project. Should the third-quarter report show early benefits from the PA series and a firmer order base, the market could decide the recent selloff went too far — a sharp reversal is possible when sentiment is this negative and surprises turn positive.

Sceptics counter that framework agreements are not orders. With no volumes attached, the Hydrasun deal is at present a statement of intent that does nothing to fix the revenue and margin weakness exposed in the second quarter. The unresolved leadership vacuum adds another complication, since strategic calls — including how quickly new partnerships get implemented — can stall without a permanent CEO. If execution stays vague, investors are likely to file the announcement alongside other headlines that promised much and delivered little in the near term.

The next real test

Until Nel attaches hard order numbers to the Hydrasun arrangement, the news remains a hopeful signal without a quantified foundation. That could change quickly if the company puts figures behind the expected Aberdeen capacity or follows up with accompanying order announcements.

The next concrete checkpoint is the third-quarter 2026 report, which must show whether the operating order book can offset the earnings shortfall from the second quarter. In the meantime, the Hydrasun deal is what it is today: a strategic marker still waiting for a number to back it up.